A £30m knowledge transfer package between Sheffield Forgemasters and India’s largest power equipment maker, Bharat Heavy Electricals Limited (BHEL), has been agreed.
The 10-year partnership to develop power generation forgings on the sub-continent will see state-run BHEL buy specialist technology and engineering knowledge from the Sheffield-based manufacturer.
The technology transfer will enable Forgemasters to establish a foothold in central Asia, helping to protect its future markets in the sub-continent and serving India’s domestic market for turbine and power generation products.
Graham Honeyman, chief executive at Sheffield Forgemasters, said: ‘This arrangement with our colleagues from BHEL is a great step forward and reinforces an already strong trading partnership between Forgemasters and India.
‘The deal will see us help build new steel-making and forging facilities to manufacture forgings for power generation projects servicing India’s domestic market. The Indian power generation market provides a unique opening for us.
‘Funds will be generated from a technology transfer fee and also royalties of sales of these new products, which will be ploughed back into Forgemasters’ ongoing research-and-development programme here in the UK.’
BHEL has £4.5bn worth of orders and is expected to register 30 per cent growth in the next three years. The company currently manufactures equipment for power plants at the Haridwar plant in Uttarakhand, northern India.