Government cancels Forgemasters' nuclear press loan

Chief Secretary to the Treasury Danny Alexander told parliament that Sheffield Forgemasters would no longer be granted a £80m loan that was promised by the Labour government in March this year to help buy and install a 15,000-tonne forging press for developing large steel components for next generation nuclear reactors.

The capability to make such components on an industrial level is only available at Japan Steel Works.

Graham Honeyman, chief executive of Sheffield Forgemasters, said the announcement was a disappointment.

‘Today’s government announcement to overturn the loan offered to Sheffield Forgemasters’ plans to install a 15,000 tonne press is a huge disappointment to all at the company,’ he said in a statement.

‘While the press would have placed the company at the forefront of civil nuclear manufacture, it is important for us now to focus on other elements of the company’s development.

‘The government clearly has a remit to reduce spending and cut the economic deficit and it is for them to decide how best to do that. Sheffield Forgemasters will continue to develop its significant involvement into civil nuclear, thermal and hydro power generation markets and seek other ways to develop the business.’ Read our article about the project here.