The company, which can trace its history back over 200 years, now goes through to the finals of the 2008 National Business Awards, which are sponsored by mobile phone company Orange.

Nigel Moore, head of group marketing at City and Guilds, which sponsored the Employer of the Year Award, said: "Forgemasters had beaten strong competition to secure the award.

"A great range of businesses in the region entered and we were very impressed with the quality of entries and their commitment to their employees.

"The finalists are all outstanding examples of the most dynamic companies in the North East and we wish them all the best of luck in their development. Congratulations once again to all at Sheffield Forgemasters International."

Darren Goldsmith, from Orange Business Services, added: "It has been a tough year for British business and it is fantastic to see so many shining examples of organisations that have pushed the boundaries in order to succeed.

"We are proud and delighted to be associated with the cream of British business."

lAfter facing financial disaster when its former parent group filed for bankruptcy in the US, Forgemasters has fought its way back to international success and saved the company's pension scheme.

Following the management buy-out which laid the foundations for the turnaround of the business, Forgemasters has allocated 30 per cent of the shares in the business for its workforce and has made major investments in training, including recruiting a total of 61 apprentices.