Exclusive:Sheffield Forgemasters to get £420m to build nuclear-powered attack submarines

He told The Yorkshire Post that Sheffield Forgemasters “is a vital part of our defence industrial base - it does things that no other company can do”.

Forgemasters can trace its roots back to the Industrial Revolution, starting at a blacksmiths in the 1750s, however it has evolved with the times and now makes state-of-the-art military components.

It was nationalised in 2021 and is currently working on components for nuclear-powered submarines for the Australian and UK navies, and will be crucial as Britain begins building artillery gun barrels once again.

“Forgemasters is a shining example of doing things on site in Sheffield that aren't done anywhere else in the UK, and in some ways not done anywhere else in Europe,” Mr Healey explained.

As part of last week’s strategic defence review, Mr Healey announced that the Royal Navy would be adding a dozen attack submarines.

He confirmed that today’s funding will go towards producing the components for those subs, before they are finished at BAE Systems’ Barrow-in-Furness shipyard, in Cumbria.

This will see a new forging line, more manufacturing and production capacity and more machinery added at Forgemasters’ Brightside base.

This will create 900 construction jobs and support the 725 highly-skilled employees currently working at Forgemasters.

“This is an example of long-term investment, long-term commitment to one of Britain’s leading defence innovators and manufacturers,” Mr Healey told The Yorkshire Post

“Almost all of this £400m will be investment in Yorkshire.

“This is the record increase in defence spending that the Government is making, producing a defence dividend in Yorkshire.

“More jobs, more apprenticeships and more career opportunities.”

Mr Healey was speaking to The Yorkshire Post on a tour of Forgemasters with Nato Secretary General Mark Rutte yesterday.

The Defence Secretary, who is also the MP for Rawmarsh and Conisbrough in South Yorkshire, said: “I also wanted him [Mr Rutte] to see what investing in British defence means in practice.

“Of course it means strengthening our arms forces, but our country’s military is only as strong as the industry that stands behind them. Ukraine reminds us of that.”

The Nato Secretary General added: “The renewal of the UK’s defence industry will not only enhance Allied security but boost national prosperity as well.

“It is a vital component in ensuring warfighting readiness.

“The United Kingdom has a rich heritage in manufacturing and innovation, and Sheffield Forgemasters is an excellent example of this.

“Harnessing this legacy will be critical to enabling Nato to effectively deter and defend against future threats.”

Mr Rutte has insisted that all Nato members - including the UK - must spend 5 per cent of gross domestic product (GDP) on their defence in the future.

“The fact is we need a quantum leap in our defence,” he said yesterday.

“The fact is we must have more forces and capability to implement our defence plans in full.”

Currently, the UK spends less than half of that, although Sir Keir Starmer has set out plans to build up to 2.5 per cent in the coming years.

Mr Healey has committed the UK to hitting 3 per cent in the next Parliament, although little detail has been given as to where the funds will come from.

When asked about this difference, the Defence Secretary said: “We’re making that argument that this need to step up [in spending], as we are, is urgent.

“We need to act, as we are now. The discussions at the Nato summit will be about funding formulas, but also about the capabilities - how we spend it and how well we spend it.

“Most importantly, how our UK contribution helps strengthen Nato’s defence and deterrents for the future through companies like Forgemasters.”