A consortium of industrial firms has extended its multi-million-pound finance deal with Sheffield Forgemasters (
www.sheffieldforgemasters.com) for another 12 months.
The FTSE-100 company, which supplies the Trident nuclear deterrent programme, received guarantees about its financial future last year from Submarine Enterprise Partners, of which BAE Systems, Babcock and Rolls-Royce are corporate shareholders.
They guaranteed £30 million worth of loans from US bank Wells Fargo to insulate themselves from the steel crisis that hit other big manufacturers, including Tata Steel.
Since then, Forgemasters has gone on to receive further funding from the Sheffield City Region LEP, which will contribute to a £6.5 million investment in machinery.
A BAE spokesman said: “We work closely with more than 7,000 companies in our UK supply chain — including Sheffield Forgemasters — to develop and manufacture advanced defence and security products for our customers. The details of our arrangements with suppliers are confidential.”