17 Mar (NucNet): The British government has announced a loan of 80 million pounds (GBP) (89 million euro, 122 million US dollars) to build a new manufacturing facility for ultra-heavy forgings for civil nuclear energy and other markets.
The government said the decision to offer support to Sheffield Forgemasters is part of “a strategic intervention” to develop the nuclear supply chain so it can meet the demand of the next generation of new nuclear power plants planned for the UK and to compete for orders worldwide.
The agreement, which still needs to go through due diligence, will see the government lend the GBP 80 million to Sheffield Forgemasters for the building of a 15,000 tonne press and finishing workshop. The loan will be combined with private finance, including support from Westinghouse.
The loan offer will make Sheffield Forgemasters only the second company in the world with necessary nuclear accreditation to make the very largest forgings required to make critical components for the civil nuclear industry.
Business secretary Peter Mandelson said: “This is not just help for one company. Today we’re announcing a willingness to invest that will make the UK a leading provider in the nuclear and the low carbon supply chain.”
The Department for Business, Innovation and Skills said today’s offer follows last year’s announcement of a Nuclear Advanced Manufacturing Research Centre in northern England, which will help UK civil nuclear manufacturers develop world class manufacturing techniques and cost competitiveness.
The centre will be based alongside the existing Advanced Manufacturing Research Centre and led by the University of Sheffield in partnership with the University of Manchester, with Rolls-Royce as the lead industrial partner.
The UK is also creating a low carbon economic area in civil nuclear, also in northern England.
Together these initiatives will create “an international region of excellence in the civil nuclear supply chain”, the government has said.
Currently the UK is able to supply around 50 percent of the plant and equipment for a new nuclear programme in the UK, but with investment this could increase to 70 percent.
Sheffield Forgemasters said the demand for heavy nuclear forgings is set to more than triple by 2020, reaching 70,000 tonnes with worldwide capacity only able to supply 59,000 tonnes over the same period.
>>Related reports in the NucNet database (available to subscribers)
Research Centre Boost For UK's Civil Nuclear Industry (News in Brief No. 157, 3 December 2009)
UK Energy Minister Highlights Global Opportunities In Supply Chain (News in Brief No. 27, 4 March 2009)
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