Landlord Voice Magazine September 2015 - Sheffield | Page 12

FORGEMASTERS Breaking FREE OF THE MOULD “The reason we can continue to operate in a high-cost western-European environment is through innovation” A lthough Sheffield is known as Steel City it is perhaps unsurprising to know that in terms of output by volume, it, along with the rest of the UK, is a minor player. Sheffield Forgemasters, perhaps the city’s proudest modern export, can produce around 100,000 tonnes of steel per year, which is really just a fraction of what its counterparts in India and China can churn out - with some plants producing between 5-10 million tonnes per year. But what helps the company continue to live on in the face of such competition is its ability to specialise and diversify. The firm, which employs more than 750 people, is able to focus on producing complex engineering 12 | LandlordVoice | September 2015 components and parts for a variety of industries from containment vessels for nuclear power stations, parts for wind turbines and offshore structures through to rolls for the production of sheet steel in the automotive industry. Mark Tomlinson, Forgemasters’ group development director, said few plants worldwide could produce any single piece of steel larger than 10 tonnes, while the largest Forgemasters had made was more than 600 tonnes – or the equivalent in weight of a mile-and-a-half traffic jam. “There is a group of about 6-12 companies in the world which can make the things we can – and it is our knowledge and experience of the processes we employ which puts us at the top of those 12 companies,” said Mark. “And the reason we can continue to operate in a high-cost western-European environment is through innovation.” But it is no secret that falling oil prices are having a dire effect on the North Sea supply chain and manufacturing is experiencing a tough time. And so, in order to weather such challenging times Forgemasters has learned to vary its market offerings. Mark said: “Since our management buyout in 2005 we have tried to keep a diverse product range and not to be dependent on any one sector and our general level of activity will switch areas depending on how busy they are. “So, at the moment we have seen more interest from customers who are not so busy taking the opportunity to re-vamp their equipment.” The company has also set up its own research and development arm named Sheffield Forgemasters RD26, which allows it to simulate all of its projects through computer-modelling before work is begun. This allows the company to make something completely new and have the scientific know-how to go ahead based on virtual, rather than physical prototypes. It also works closely with the University of Sheffield Advanced Manufacturing Research Centre to develop technical capabilities and innovative manufacturing techniques, which help it stay at the forefront of the civil nuclear supply chain. Sheffield has one of the highest student retention rates in the country – which means there is a plentiful supply of graduate recruits for its qualified engineers and scientists to help keep Forgemasters at the top of the advanced manufacturing pecking order. Mark said: “One thing we have to acknowledge is that all the companies in the Sheffield region are reasonably specialist Mark Tomlinson – there Group Development are not Director - Forgemasters many people who do what we do. “It is not always easy to get someone and fit them into a hole we have so we do have to grow our own – the skills are there but there has to be a cont [