GBP80m Forgemasters Loan My Be Revived

Fri, 21 Jan 2011

Steel firm Sheffield Forgemasters has been boosted by speculation that it could still be granted an £80 million loan to enable it to produce components for nuclear power plants.

The proposed financial support, pledged by Labour business secretary Lord Mandelson before the 2010 General Election, was controversially scrapped by the coalition Government last year.

In September, Deputy Prime Minister Nick Clegg said the business loan was "not affordable under this year's budget" and added that the loan had been agreed in a "promise made where the money was not available".

However, sources close to the Government say the company could yet receive the loan through the £1.5 billion Future Jobs Fund.

Dr Graham Honeyman, chief executive of Sheffield Forgemasters, said: "The company welcomes recent comments by ministers acknowledging the Government's intention to review the 15,000 tonne press funding project with us again during the first half of 2011 and to do so in a supportive way."

"We look forward to working closely with the Government to seek avenues forward on the funding issue, however the detailed business environment regarding the 15,000 tonne press has changed substantially since the project was first conceived almost three years ago and considerable, comprehensive work will have to be repeated before a new application can be made."

Sheffield Council's Liberal Democrat leader, Councillor Paul Scriven, said: "I'm really pleased that the coalition Government made available the Regional Growth Fund to help areas such as Sheffield and South Yorkshire, and I'm very pleased that Forgemasters, if they make a commercial decision to go ahead with the nuclear components press, will be a prime candidate for help."
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