Two sites in the North East are among the final three locations being considered by Rolls-Royce for a £200m nuclear reactor factory.
The IAMP site near Sunderland and the Teesworks site in Redcar are competing with Shotton on Deeside to land the plant that promises to bring up to 200 jobs and substantial investment. The factory, which is proposed to be 23,000 sqm, will produce component parts to be used in the firm's fleet of small modular reactors (SMRs).
It will make some of the largest and most complex parts for the power stations that will be capable of generating 470MW of clean electricity - enough to power a million homes. Having now visited the sites, Rolls Royce is due to make a final decision early next year after final evaluations and detailed assessments are made against the requirements and criteria for the factory.
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In total, the manufacturer will set up three facilities - this being the largest and known as the 'heavy pressure vessels factory'. Another two sites for smaller operations will be chosen from the nine other locations on the wider shortlist. Forest Park in Newton Aycliffe is in contention.
North East business and local authority leaders reacted warmly to the news. South Tyneside Council leader Tracey Dixon said: "We’re delighted that IAMP is in the running to secure this significant investment, which will create jobs and opportunities for local people and businesses.
"IAMP was conceived with the aim of securing sustainable employment opportunities for local people and the interest and ultimately investment it has attracted demonstrates that we were right to be ambitious. We are already leading the way in low carbon innovation and this facility would place South Tyneside right at the forefront of the green revolution.”
Graeme Miller, leader of Sunderland City Council, said: "IAMP is a unique site and is already a well-established, leading destination for advanced manufacturing businesses. We continue to invest in IAMP to enhance its position and deliver a yet-more attractive site for investors, so it is fantastic to see this being met with interest from Rolls-Royce SMR, who we would love to see add its name to the world-class cluster of manufacturers that is taking shape here."
Invest North East England director Guy Currey said: "It is fantastic news that IAMP in Sunderland/South Tyneside has been shortlisted for the new Rolls-Royce SMR factory. IAMP provides a wonderful opportunity for Rolls-Royce to be located at the heart of a thriving engineering cluster alongside some of the biggest names in advanced manufacturing including Nissan Motor Manufacturing UK, Envision AESC’s new battery gigafactory, Faltec Europe and SNOP.
"North East England has a rich heritage in manufacturing and has always been an engineering powerhouse. Our world-leading cluster of advanced manufacturing companies, highly skilled workforce and excellent connectivity has helped the region attract some of the biggest global names. It has been a pleasure to have helped support this project alongside the region's local authorities so far, and we will continue to support Rolls-Royce as they assess the sites in their shortlist."
Tees Valley Mayor Ben Houchen said: "It’s great news that Teesworks is in the final running to become home to Rolls-Royce’s SMR factory. The site is fast becoming the place to do business in innovative net zero projects and this facility – helping to drive forward clean energy power plants – would be a fantastic fit.
“As major low-carbon projects in offshore wind, hydrogen and carbon capture and storage continue to take shape at Teesworks, we’re at the cutting edge of the sector. This means we’re inevitably seeing further interest and opportunity from investors keen to base themselves here and create more good-quality, well-paid jobs. Whatever the outcome, this goes to show big businesses and household names have their eyes on Teesside like never before.”
Henri Murison, chief executive of the Northern Powerhouse Partnership, said: "This is a huge vote of confidence for the North from Rolls-Royce SMR. Once Government negotiates a deal to underpin the necessary private investment, we should be able to build a fleet of power stations across the UK, using cutting edge, homegrown technology.
"The green industrial revolution - with small modular reactor technology at its heart - is our once-in- a-generation opportunity to put the North at the forefront of the transition to net zero, creating thousands of well-paid, skilled jobs and turbocharging our productivity."
Rolls-Royce SMR chief executive, Tom Samson, said: "I want to thank everyone involved in the selection process and offer my congratulations to the three that have made the final shortlist. This is part of the process to build the first of at least three factories that will manufacture components for a fleet of small modular reactors and will present an incredible opportunity for a region of the UK. Our power stations will be built in British factories situated in the north of England or Wales and will generate tens of thousands of long-term highly skilled jobs - accelerating regional economic growth."
Rolls-Royce SMR's plan is seen as a radically different way of setting up nuclear power stations with around 90% of the components being made in a factory. As the only SMR in Europe currently in the regulatory process, there is also an opportunity to export the technology.
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