The UK government today cancelled an 80-million-pound (GBP) (118 million US dollars, 95 million euro) loan to Sheffield Forgemasters International Ltd for equipment to make the large forgings for nuclear power stations.
The GBP80 million loan, promised by the previous Labour government, was the final piece of a GBP 140 million funding package to enable SFIL to buy and install the country's first 15,000-tonne forging press and finishing workshop to make the ultra-large components for the nuclear energy industry.
The equipment would have made SFIL one of only a handful of companies globally with the specialised technology needed to manufacture all the forgings required for nuclear power plants.
UK business secretary Vince Cable said the government had both to reduce the country’s budget deficit and help create growth.
“In the economic climate that we find ourselves in some of the commitments previously made by Government can now no longer go ahead,” he said.
