MOD to acquire Sheffield Forgemasters

Camm1

LE
BBC Reporting the MOD will acuire Forgemasters for "defence-critical plant, equipment and infrastructure". £100m investment over the next 10 years.

More Tanks and Subs?

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eta linky
 
They also do nuclear and with the proposed modular reactors potentially on their way it would make sense that the UK govt is trying to keep everything in-house.
 
They also do nuclear and with the proposed modular reactors potentially on their way it would make sense that the UK govt is trying to keep everything in-house.
In UK hands yes, but not UK civil service hands...
 

Blogg

LE
They also do nuclear and with the proposed modular reactors potentially on their way it would make sense that the UK govt is trying to keep everything in-house.

Been circling the drain for a while, all manner of indirect Govt. support but can't get away from fact is it is skint, can't afford the kit required to fill future contracts and therefore probably not a going concern.

Going pop would have left many things in deep shit

"The state has taken control of the business - which makes vital components for the naval and nuclear sector for customers including BAE Systems, Babcock and Rolls-Royce - amid fears that a collapse would damage national security.

Nationalisation also paves the way for the MoD to spend hundreds of millions of pounds of taxpayers' money on replacing key machinery which the company would not be able to afford as a private business."

 
I do note that since Brexit, the UK Govt has been on a bit of a spending spree. Would this have been allowed if we'd still been in the EU as I know they were very against state run companies.
 

Hohenidoom

Old-Salt
£2.6mn sounds an awfully small amount of cash for a firm with such a unique capability.

Perhaps work making "oil pipelines" isn't as lucrative as it used to be, eh?
 
I do note that since Brexit, the UK Govt has been on a bit of a spending spree. Would this have been allowed if we'd still been in the EU as I know they were very against state run companies.
Uncertain - but look at the bigger picture of what is currently happening. We are currently outing any Chinese involvement in CPNI projects and the possibility of a Chinese buyout of Forge Masters was very high indeed, hence why HMG have stepped in.

Sheffield also has the high technology park which encompasses Rolls Royce and many other parts of the defense programmes
 
Also reported by the IET as well:


So, a major investment into the plant as well Nationalization to avoid non-UK acquisition. Even the unions appear happy with it, which must be a first!
 
£2.6mn sounds an awfully small amount of cash for a firm with such a unique capability.

Perhaps work making "oil pipelines" isn't as lucrative as it used to be, eh?
It is just the way business cash flow works. They bob along making a moderate profit while the infrastructure deteriorates. Eventually they are forced to invest in new equipment/technology to remain competitive/profitable or in a few years they will go down the tubes. Work out how much it will cost and the accountants point out that is more than the company is worth.

That's when they need to seek funding and there are many ways to do this, sell, sell more shares, float, go into partnership, sell to venture capitalists (last resort), etc, etc. All reduce shareholder value and dilute control/ownership, but the figures guarantee they can't keep going as is.

Might be taking in more money than ever before but if the numbers don't stack up they are doomed.
 

Grownup_Rafbrat

ADC
Kit Reviewer
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I do note that since Brexit, the UK Govt has been on a bit of a spending spree. Would this have been allowed if we'd still been in the EU as I know they were very against state run companies unless EDF, Deutsche Bahn ...
 

Blogg

LE
£2.6mn sounds an awfully small amount of cash for a firm with such a unique capability.

Perhaps work making "oil pipelines" isn't as lucrative as it used to be, eh?
Bought out the shareholders, who were sitting on a company that was possibly on a short track to being bust.

Did better than owners of a company I used to work for. Bought another business in a "transformational" acquisition.

It was so bad that less than two years later they had to effectively pay another outfit to take it away, not that you would know that from the PR guff
 
MOD buys and invests £400 million then sells it in 10 years for £1 to a VC firm with three recently retired VSOs and Senior Civil Servants on the board?
 
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Yokel

LE
Pity they hanged Saddam Hussein, he was a good customer.

For totally innocent big tubes for no purpose at all, definitely not to shell Israel.

I started a thread about Saddam's supergun years ago. I recall we concluded that although firing a projectile was feasible, it was not suited to use as a weapon due to the lack of mobility. It was just a toy to attract Gerald Bull to Iraq to work on extending the range of Saddam's Scuds so that they could hit Riyadh or Tel Aviv.

There was a theory that Saddam wanted to use it to launch a mini satellite - a huge propaganda coup for his regime. I wonder if HM Government could have paid him off to build his space gun somewhere like Benbecula.
 

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