- Vote of confidence in UK steel and manufacturing as Taiwanese investor Walsin Lihwa brings new capabilities to the UK and expands its aerospace and energy materials portfolio.
- Hundreds of well-paid and skilled jobs to be created, delivering on the Government’s Plan for Change for economic growth and higher living standards.
- Investment Minister, Baroness Gustafsson, visited Sheffield site today to celebrate investment.
Hundreds of high skilled jobs are to be created in Sheffield after Taiwanese advanced manufacturing company Walsin Lihwa (WL) announced a major investment that boosts the UK’s steel industry and advanced manufacturing sector.
The positive news will create over 200 jobs by 2028 in a first phase, and marks the first step towards the company’s plans for a major presence in the UK, with further job creation and investment expected from WL in South Yorkshire and the UK in the coming years.
The investment from WL will establish a new superalloy forging facility and plans for a research and development centre and come through an upgrade of its existing Special Melted Products (SMP) factory in Sheffield, which will be focused on producing speciality steel and nickel parts for aerospace jet engines and energy industry products.
Delivering on the government’s economic growth mission at the heart of the Plan for Change, the investment will create good, well-paid jobs for local workers, with average salaries expected to be over £40,000 a year.
The news follows Deloitte’s latest survey of finance officers which has found the UK is the joint top location for investment in the world and data out this week from Make UK and BDO which finds that manufacturing in the UK has recovered to 2019, pre-pandemic, levels in every region.
The investment is a major boost to the government’s modern Industrial Strategy which launched last month and had identified opportunities in growth-driving sectors like this as priorities for government support. A vote of confidence in South Yorkshire’s world-class strengths in advanced manufacturing, clean energy and defence, it will back the growth corridor across the northern city regions.
Notably the investment will introduce new melting and superalloy forging capabilities – a new strategic manufacturing capability to the UK – which will reduce domestic producers’, such as Rolls Royce, reliance on imports.
These capabilities will aid the UK’s aspirations in aerospace, steel, nuclear and defence as set out in the modern Industrial Strategy, contribute resilience towards supply shocks and will help grow Sheffield’s manufacturing sector, which was valued at £1.4bn in 2023.
Minister for Investment Baroness Gustafsson CBE said:
Our modern Industrial Strategy is all about having more high paid jobs in the industries of the future, in communities right around the UK. This investment is a major vote of confidence in Sheffield’s world-class manufacturing sector and couldn’t match our ambitions better.
Our Steel Strategy later this year will set out further support we will take to boost the steel sector and encourage investments like this, and we look forward to hearing from Walsin Lihwa about their ambitious UK growth plans, delivering on our Plan for Change.
Once the forging facility is established, WL have also set out plans to set up a research and development centre in the UK in a next phase later in the decade, focused on strengthening the company’s capabilities in materials and digital technology innovation and contributing to a growing aerospace and defence cluster in South Yorkshire.
The centre will generate hundreds of new well-paid jobs and apprenticeships, with a range of future-proof skills and expertise in manufacturing operations, welding, melting, metallurgy, engineering, machining, material science, data analytics, and other high value career opportunities.
The Investment Minister, Baroness Gustafsson, attended the site today with WL’s Chairman, Yu-Lon Chiao, to celebrate the investment and to hear more about the company’s plans for UK growth.
Walsin Lihwa Chairman, Yu-Lon Chiao, said:
The United Kingdom possesses a vast market in aerospace, energy, and nuclear power sectors that is unparalleled by Taiwan. This investment marks a significant milestone in SMP’s development and underscores Walsin Lihwa’s firm determination for global expansion strategy.
Looking ahead, we plan to establish an R&D centre in the UK to further strengthen our capabilities in materials and digital technology innovation, while deepening our collaborative ties with the European market to jointly promote industrial upgrading and sustainable development.
Gareth Stace, Director-General, UK Steel, said:
The substantial investment that Special Melted Products is making in expanding its capability and capacity is tremendous news for local people, and UK plc. This is sign of trust in British steelmaking and manufacturing, pushing forward valuable investment plans and establishing skilled careers. Special Melted Products plans mean we are onshoring supply chains for industry giants like Rolls Royce, meaning investment goes directly back into UK jobs and the economy.
South Yorkshire’s Mayor, Oliver Coppard said:
Walsin Lihwa choosing to invest in SMP and build their new research and development centre in South Yorkshire is a huge vote of confidence in our region’s talent, innovation and expertise, and the advanced manufacturing ecosystem we’re creating here.
I promised to build a bigger and better economy in South Yorkshire, creating good jobs in the industries of the future. So I’m proud my office has been able to provide support that has helped to unlock this major investment, offering new jobs and opportunities, and bolstering our world leading steel industry.
We have always been known for our strengths in cutting-edge manufacturing technologies and industrial excellence. Walsin Lihwa’s investment builds on our legacy, reaffirming South Yorkshire’s place at the heart of UK high-value manufacturing and innovation.
Cllr Tom Hunt, Leader of Sheffield City Council, said:
This significant investment in Sheffield’s advanced manufacturing sector is a major milestone for our city and strengthens our global reputation for innovation and excellence.
The investment is a strong sign of recognition in our city’s capabilities, talent, and ambition. It will create new high-quality local jobs and training opportunities as next generation technologies are developed in Sheffield. We look forward to continuing to work closely with Walsin and Special Melted Products long into the future.
Notes to editors:
- Advanced Manufacturing, Clean Energy and Defence are three of eight growth-driving sectors in the UK Government’s modern Industrial Strategy: a 10-year plan to make it quicker and easier for businesses to invest in the UK, provide them with certainty and stability to make long term decisions and ensure they benefit from the UK’s openness to the world.
- Information on recent government actions to support the steel sector can be found here.
- You can find all our recent and upcoming announcements relating to the Steel Strategy on our GOV.UK Collection page
- Deloitte’s latest survey of UK Chief Financial Officers can be found here.
- Make UK and BDO’s annual Regional Manufacturing Outlook report can be found here.
- Walsin Lihwa will confirm the total investment figure in the coming weeks.
