Thursday, 17 June 2010
Sheffield Forgemasters' £80m nuclear parts loan axed
A factory's expansion plans, which would have created 180 jobs, have been halted after the government cancelled an £80m loan.
The previous government pledged the cash to Forgemasters, so the Sheffield company could build parts for nuclear power stations.
Forgemasters said the plans would have created skilled jobs and the news was a "huge disappointment".
The coalition government has been reviewing Labour's spending decisions.
The Forgemasters loan is the largest sum awarded to a single organisation to be cancelled by the new government.
Announcing the loan in March, the former Business Secretary Lord Mandelson said it would make Forgemasters one of two plants in the world able to make large forgings for the nuclear energy industry.
Sheffield Central Labour MP Paul Blomfield said: "Scrapping the loan to Forgemasters is a kick in the teeth not just for Sheffield but for the whole of British manufacturing."
He added: "The Lib Dem and Tory government has cost Sheffield news jobs and growth, and people will remember this for a long time. It's a disastrous day for Sheffield."
The announcement comes a day after a man died following an industrial accident at the Forgemasters site.
A £13m project by regional development agency Yorkshire Forward to develop the former Outokumpu steelworks site in Sheffield has also been cancelled. BBC News
This is of no direct relevance to Tameside but as Paul Blomfield MP says it is a kick in the teeth for the whole of British manufacturing. These are the exact type of skills and industry this country needs to nurture if we are to ever revive our manufacturing industry.
I was saddened to hear this news and it is does not bode well for the future of manufacturing under the new coalition government. Of all the ludicrous and insane schemes Labour wasted money on why did the new government have to pick on this one to axe? This was a long term investment not a waste of money. The insanity of the situation is Sheffield Forgemasters’ will probably go to the wall now. Skilled men will be thrown out of work. The site of the factory will become a retail park with worthless ‘McJobs’ and when we need the parts for the nuclear industry we will end up buying them from an overseas manufacturer for twice the price we could have made them for ourselves. Tameside Citizen