Government Urged To Help Secure Financial Support For Sheffield Firm

Tue, 14 Dec 2010

MPs have called on the Government to continue in its efforts to help Sheffield Forgemasters expand following its controversial decision to axe an £80m industrial loan earlier this year June.

Business Secretary Vince Cable cancelled a planned loan to the world's largest independently owned forgemaster in June as part of a review of Labour's spending decisions. The funding would have allowed the South Yorkshire-based firm to build a 15,000-tonne press to make large components for nuclear power stations.

A report by MPs on the Business, Innovation, and Skills (BIS) Committee said that the Sheffield Forgemasters loan was identified by the Government "as an easy cost saving ".

It added that Britain would have taken a lead in the civil nuclear industry if the financial support had been granted as it would have allowed the company to become one of only two in the world capable of making forgings large enough for the nuclear industry.

"For that reason we urge the Government to continue in its efforts to secure funding for this project, whether by public or private funds, so that an opportunity to take a lead in this important industry is not lost," the committee said.

"Therefore, we welcome the undertaking given to us by the Secretary of State that he would ‘entertain’ a fresh loan application from Sheffield Forgemasters."

"Should the company make a further application, we would expect the Secretary of State to honour that undertaking."
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