Rolls-Royce scales back plans to build nuclear factories in UK

ROLLS-ROYCE has scaled back plans to build two new factories for its small modular reactor (SMR) programme in the UK, following delays to a government design competition.

The FTSE 100 company had originally proposed one factory to make heavy pressure vessels for its SMRs and another to make the building blocks of the reactors.

It had drawn up a final shortlist of locations for the pressure vessels factory, including the International Advanced Manufacturing Park on the outskirts of Sunderland, Teesworks in Redcar and the Gateway industrial park in Deeside, North Wales.

But on Friday Rolls confirmed it no longer intends to proceed with that plan because there is no longer time to build the factory and make the first pressure vessels for the early 2030s, when it hopes to complete its first SMRs. It is still proceeding with work to build the second factory, however.

The company had been waiting for the outcome of an SMR design competition in the UK – first announced by the Government in 2015 – before it made a decision on the pressure vessel plant.

But that competition has been delayed, with the arms length body Great British Nuclear only formally created last summer and winners not due to be announced until this June at the earliest.

Instead, the engineering giant will now buy its heavy pressure vessels from a third party supplier.

The large, metal components sit at the heart of nuclear reactors. They are only made by a select group of companies, partly due to the need for specialist welding techniques. Among those is Sheffield Forgemasters, nationalised by the Ministry of Defence in 2021.

Rolls is still pressing ahead with plans to build its second factory, which will build the modular units that make up its SMRs. It is understood that sites shortlisted for the pressure vessel factory will also be contenders for the second plant but no decisions have been made.

On Friday, Rolls-Royce SMR confirmed the company had now “prioritised work on our modules assembly and test facility”.

A Government spokesman said: “Our world-leading SMR competition aims to be the fastest of its kind, helping secure billions in investment for the UK, meaning cleaner, cheaper and more secure energy in the long term.”