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The two-year civil engineering job will protect the steelworks and wider Lower Don Valley from repeat flooding by intercepting Bagley Brook where it enters the plant.
A major underground system of attenuation tanks, transfer tunnels and a new pumping station will capture and store stormwater before releasing it into the River Don at a controlled rate of 8,000 litres per second.
JBA Bentley will sink a 5-metre shaft to launch a tunnel boring machine that will drive a 320-metre tunnel, 12 metres below ground. The launch shaft will double as the pumping station and storage chamber.
Craig Fisher, programmes director at Sheffield Forgemasters, said the system will “address a known flood risk which can affect both our plant and this part of the city.”
A section of flood wall along the Don will also be rebuilt to house the new outfall structure.
The project fulfils planning conditions for Forgemasters’ £400m site transformation, including its new 13,000-tonne forging line now under construction beside the Midland Mainline railway.