Rolls-Royce snub for British steel after signing contract to build UK's first mini nuclear reactor
Rolls-Royce has signed a contract to construct the first nuclear small modular reactors in Europe – but they could be built without using British steel.The deal between Rolls-Royce SMR and Great British Energy allows detailed design and procurement to begin for the £6billion reactors to be housed at the power station in Wylfa, on Anglesey.While the Government has stipulated that an unspecified 70 per cent of materials for the project must be British, there is no guarantee this includes structural steel or precision steel for the reactors.Rolls’ partner company in the project, CEZ, owned by the Czech state, is pushing for reactor parts to be made in the Czech Republic rather than at the Forgemasters steelworks in Sheffield, which is owned by the Ministry of Defence. Richard Caborn, a former Sheffield Labour MP and a minister in Tony Blair’s government, said: ‘I am very disappointed that the announcement did not confirm that British steel and British forgings from Forgemasters will be used.If Rolls-Royce don’t use British steel and British forgings, this will be a massive vote of no confidence to British industry.’ Power up: Rolls-Royce has signed a deal to begin design and procurement for the £6bn reactors to be housed at the power station in Wylfa, on Anglesey (pictured)Caborn and Labour MP Clive Betts, who represents Sheffield South East, argue that if Forgemasters makes the reactors, it could create a boom for the steelworks and suppliers, benefiting the UK taxpayer.Betts and Caborn are calling on ministers to change their requirements so that the taxpayer-funded steelworks get the business. Caborn said the lack of stipulation about which materials are sourced from Britain means ‘it could end up being the concrete’.Around 3,000 jobs will be created at Wylfa and in the surrounding area, plus an additional 5,000 jobs nationally.The SMR project was announced last November, with Rolls-Royce – whose partners also include Qatar’s sovereign wealth fund and France’s BNF Resources – chosen as preferred bidder.Chris Cholerton, Rolls-Royce SMR chief executive, said: ‘This project is important to the UK’s energy security and will power up our business and the UK supply chain.’Gareth Stace, director general of UK Steel, said yesterday that the contract was ‘a major step forward for the UK’s clean energy ambitions and long-term energy security’.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Rolls-Royce snub for British steel after signing contract to build UK's first mini nuclear reactor
