SFIL chairman Tony Pedder said: “As a further demonstration of mutual commitment between the company's management and its employees, if one was needed after the fantastic response from the staff during recovery from Sheffield ’s devastating June floods, this is in my view is outstanding.

“It also shows the level of confidence that the employees have in the business and its future despite having been so close to the brink only two short years ago.

“This response certainly makes the group board members even more aware of, and focused on, its responsibilities to its employees, most of whom are also now its shareholders.”

Forgemasters met a two year promise to employees by giving them the opportunity to own a share of the company. Management at SFIL, led by chief executive Graham Honeyman, made the commitment when it completed a management buy-out (MBO) in 2005.

Tony Pedder added: “This is a very dynamic period for Sheffield Forgemasters. The company is winning some of the largest contracts in its history, including a £60m deal over 10 years to supply Germany with casks required to transport and store waste from its nuclear power programme.

“Forgemasters has also diversified with the establishment of Vulcan SFM, a specialist design and project management company, which has secured international contracts far exceeding its anticipated targets.

“These factors highlight the company’s global standing and are significant motivators for the workforce, which is clearly reflected in the outstanding take-up of shares made available to staff.”

SFIL supplies an increasing global demand for high quality engineered products to key industries such as defence, nuclear, oil and gas exploration, power generation, marine and construction, despite setbacks caused by terrible floods which swept South Yorkshire in 2007.

South Yorkshire’s leading legal services provider DLA Piper, who also acted on the MBO, advised Forgemasters on the highly complex transaction.

Matt Ainsworth, Senior Associate at DLA Piper's Sheffield Office added: "DLA Piper is very proud to have worked again with Sheffield Forgemasters in fulfilling its commitment to give employees the opportunity to own a stake in the company. The take up of shares by employees has been exceptional and demonstrates the strength of feeling for this company and its management, particularly after the terrible impact of the recent floods."

SFIL specialises in a broad range of heavy forged and cast steel products as well as stocking ingot and bar. SFIL can design, establish material requirements, produce material specifications and manufacture products to the highest quality.

The company produces some of the largest bespoke engineered products in the world with capacity for castings of up to 350 tonnes and forgings of up to 200 tonnes.