The UK nuclear industry has reacted with disappointment to the government's decision to withdraw an £80m loan to Sheffield Forgemasters to make heavy forgings.

 

The loan was to help the steelmakers make a press large enough to cast the biggest nuclear components - and tap into a global market.

 

The loan, which would have been paid back in full, was hugely significant to UK manufacturing. There are only two other presses, In Japan and South Korea, that can make the 15,000 tonne plant needed to make the big nuclear forgings - and it has been identified as a global supply chain pinch-point as many countries are now looking to nuclear to meet their energy needs and climate change objectives.

 

NIA Chief Executive Keith Parker said the decision was disappointing and was a blow to UK manufacturing.

 

" We completely understand the government has to make cuts - and we note that this in no way reflects on their ambitions to deliver a new generation of nuclear power plants for the UK."

 

"But this was a loan which would have been re-paid in full and which would have helped underline the global export capabilities of UK nuclear at a time when a hugely lucrative market is opening. For that reason we are extremely disappointed with this decision."

 

In a emailed statement energy minister Charles Hendry said: "Withdrawal of this loan is no reflection on the company, the project, its management or staff, or on our intention to remove unnecessary barriers to new nuclear in the UK. In these difficult times, tough decisions have to be made across government. This is one such decision."