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Forgemasters scales back nuclear plans
Sheffield Forgemasters has abandoned plans to become one of only two companies in the world capable of making the massive forgings at the heart of civil nuclear power plants.
The Brightside Lane firm is suspending work on the project, after talks with the coalition Government, which axed the preceding Labour Government's pledge of an 80 million loan.
But, Forgemasters says it is not giving up completely on its nuclear ambitions.
Senior Government officials met with Forgemasters' board to see what alternative sources of funding might be available to finance the firm's ambitions to install a 15,000 tonne press, after the loan was axed as part of the Government's austerity programme.
The press was to be the key component of a 140 million nuclear engineering shop, which would have created up to 200 jobs at Forgemasters and a similar number of jobs with suppliers in the Sheffield region.
Speaking in the wake of the talks, Sheffield Forgemasters' chief executive Graham Honeyman said: "We are still keen to undertake the 15,000 tonne press development but feel that the company's best interests will be served by suspending work on the project for the time being."
Without the press, Forgemasters will not be able to make the biggest forgings used in the core of a civil nuclear reactor, leaving Japan Steel Works as a monopoly supplier and potentially delaying the worldwide programme to develop nuclear energy as a stopgap alternative to greenhouse gas fuels.
But the Sheffield company still sees opportunities to supply the civil nuclear programmes of countries across the globe.
"The opportunities in global nuclear will continue to grow," said Mr Honeyman.
"This pause will give the company, which has invested more than two years and significant funds to this project, time to resume a greater focus on growing our business into civil nuclear and other sectors.
"We will continue to pursue other development opportunities based around our 10,000 tonne and 4,000 tonne forging presses and our recently completed programme of machine shop improvements. As our thinking develops we will of course take up the Government's offer of further discussions. The company recognises the difficult financial position faced by the country and accepts the loan offer will not be reinstated."
Coalition Government Business Secretary Vince Cable struck a conciliatory note, following the talks, in contrast to Prime Minister David Cameron and his deputy, Lib Dem leader and Sheffield Hallam MP Nick Clegg, who had accused Forgemasters directors of seeking Government help because they were unwilling to dilute their
shareholdings through a commercial loan deal.
Mr Cable said: "I understand that this outcome is disappointing for the company and its employees, who have acted very professionally and responsibly throughout.
"I will keep the situation under review and reconvene the meeting of experts with the Sheffield Forgemasters Board when they are ready, to review the investment potential with the company."
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