£140m deal will see Yorkshire lead nuclear power sector
SHEFFIELD Forgemasters is set to take a huge step forward in its role in the development of the next generation of nuclear power stations today with the Government expected to unveil a £140m deal.
In a move which will help create 400 jobs directly at steelmaker Sheffield Forgemasters and through its supply chain, Business Secretary Lord Mandelson is expected to announce a package to finance a 15,000 tonne forging press at the historic company’s Sheffield headquarters.
The press will manufacture key components for power plants built over the next decade.
The Government is expected to provide up to £80m in loans, with Westinghouse, the US nuclear reactor provider, expected to provide about £40m in new orders for the new press. The rest of the cash could come from banks and private equity.
Lord Mandelson will hail the move as “brilliant news” for the civil nuclear supply chain in Britain.
Lord Mandelson will also say: “We’re reinforcing this investment with the creation of the Nuclear Advanced Manufacturing Research Centre in South Yorkshire, a strategy for building our nuclear skills base through the Nuclear Skills Academy in Cumbria and a comprehensive strategy for engaging UK small and medium-sized engineering companies in the huge opportunities in the nuclear supply chain.”
Lord Mandelson will also emphasise the agreement with Sheffield Forgemasters as indicative of the Government’s ‘New Industry New Jobs’ agenda.
Westinghouse said the press would have the capability to produce enormous “ultra-large” forgings, such as pressure vessel and steam generator components, which sit at the heart of modern nuclear power plants.
Mike Tynan, chief executive of Westinghouse UK, said “Today’s announcement is yet another tangible indicator that new nuclear build is becoming a reality for the UK and around the world.
“I hope it will send a strong signal to other UK companies who may be considering the wide range of opportunities offered by the nuclear industry.”
Meanwhile, the Government is also set to today announce its industrial strategy for carbon capture and storage technology with the Yorkshire and Humber to be identified as the UK’s first low carbon economic area for CCS.
CCS catches harmful fuels from fossil fuels and transports them offshore to store under the seabed.
Sheffield Forgemasters underwent a management buyout, led by Graham Honeyman in 2005, and will be one of only a handul of companies in the world able to provide the services the forge can provide.
