The company said that the funding agreement allows it to capitalise on huge international demand for safety critical forgings as it joins a group of only five companies capable of producing the largest components for nuclear power reactors.
The government’s package complements other contributions by key partners of SFIL, including nuclear power-plant manufacturer, Westinghouse and the Sheffield office of Lloyds Banking Group.
Graham Honeyman, chief executive at SFIL, said: “The government loan forms the final piece of a two-year project to finance the installation of a 15,000 tonne forging press which will place the UK at the peak of a global supply chain for civil nuclear manufacturing.
“This is a massive coup for UK manufacturing and firmly underpins the country’s place at the leading edge of engineering technology.”
The demand for heavy nuclear forgings is set to more than triple by 2020, reaching 70,000 tonnes with worldwide capacity only able to supply 59,000 tonnes over the same timescale, SFIL said.
Mr Honeyman added: “The world’s capability to make large and ultra large forgings for the nuclear industry is currently restricted to the equivalent of five to seven reactor supply systems a year. However the average nuclear construction rate between 2010 and 2030 is expected to be 13 new reactors a year.”
SFIL carries ASME certification to manufacture civil nuclear castings and forgings and is already providing many components to the civil nuclear industry and the defense industry, enabling it to roll out production of the forgings within as little three years from the 15,000 tonne press’ installation. In securing the funding, SFIL will create hundreds more jobs at its Brightside Lane site.
The development follows SFIL’s signing of a GBP30m pound trade agreement to oversee the development of power generation forgings with Indian state run power equipment maker Bharat Heavy Electricals (BHEL).
The 10 year agreement, which helps see the protection of future SFIL markets in the sub-continent, will mainly serve India’s growing domestic market for turbine and power generation products.
