Sheffield & South Yorkshire

Sheffield Forgemasters lands $30m US Navy submarine contracts

Forgemasters furnace Image copyright Sheffield Forgemasters
Image caption Sheffield Forgemasters said it was working to turnaround its business after announcing 100 job losses in January

A Sheffield steel company has won contracts worth more than $30 million to manufacture components for the US Navy's fleet of submarines.

Sheffield Forgemasters said the "classified" deal provided "a boost for our Brightside Lane operations".

It said the first orders would be completed this year, with another batch expected to finish in 2017.

In January the firm announced it was cutting up to 100 jobs because of an international collapse in steel prices.

It had previously said slowing growth in the global economy and reduced activity in the traditional oil and gas sector had hit the firm.

Details of the contracts have not been disclosed but the company said it would be building parts for a new fleet of water crafts to replace the US Navy's Ohio class of submarines.

Chief executive Dr Graham Honeyman said: "These orders provide a boost for our Brightside Lane operations as we work towards our business turnaround plan.

"Work has already started on these orders and the first parts will complete in 2016 with another tranche of components anticipated to follow in 2017, providing work for our melt shop, foundry and machine shops.

"These are complex components and require detailed modelling and manufacturing to highly specific tolerances."

The series of contracts had been approved by the UK government, the company added.

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