Unite urges Cable to back Sheffield Forgemasters

Thursday, 3 June 2010 12:00 AM

Unite union has written (see notes to editors) to Vince Cable, Secretary of State for BIS warning that failure to support loans including a crucial loan to an advanced manufacturing company, Sheffield Forgemasters will cost thousands of jobs and jeopardise Britain's preparations to build a new generation of nuclear power stations.

Sheffield born Unite leader, Derek Simpson has also made a personal plea to Nick Clegg, who has his constituency in Sheffield, to use his influence to support the company. Mr Clegg emphasised the importance of 'special measures' for areas like Sheffield during the election campaign.

Peter Mandelson, Labour's former business secretary promised an £80m loan to Sheffield Forgemasters to help pay for a new forging press which will place the company at the top of the £40bn supply chain for the new wave of nuclear power stations. The ConDem coalition Government recently announced it would review all Labour's spending decisions taken since January 1 putting the loan at risk.

Unite is extremely concerned over the decision to review the loans rightly given by the previous Government to a few engineering manufacturing firms to support investment projects. Unite is particularly concerned about the loan of £80m given to Sheffield Forgemasters to support their investment in a new large forge for the construction of nuclear power stations.

Derek Simpson, Unite's joint general secretary said:

"Failure to support Sheffield Forgemasters would be a colossal error of judgement. The company is unique, there is not another company in the world that has its skills and expertise. Britain needs companies like Sheffield Forgemasters if we are to meet our low carbon energy needs and build a modern, advanced manufacturing base.

"The uncertainty that the review of this loan and other loans is creating could cost the UK thousands of jobs if there is not a quick and positive decision by the new Coalition Government.

"Nick Clegg spent much of the election campaign talking about Sheffield and the need to support jobs in the area. If he is as proud of Sheffield as I am he will use his influence to do everything possible to support this very special company."

ENDS

Contact: Ciaran Naidoo on 07768 931 315

notes to editors

2nd June 2010

Rt. Hon. Vince Cable MP Secretary of State for Business Innovation and Skills

Dear Mr. Cable,

ENGINEERING MANUFACTURING SUPPLY CHAIN

On behalf of our Union, I write to express my extreme concern regarding the decision to review the loans rightly given by the previous Government to a few engineering manufacturing firms to support investment projects. I am particularly concerned about the loan of £80m given to Sheffield Forgemasters to support their investment in a new large forge, together with a family of machine tools that are needed to produce precision large forging required for PWR nuclear power stations.

This investment programme involves Westinghouse forward ordering these forgings and giving a £40m up front payment towards this investment programme. I can only emphasise to you that it took a great deal of pressure and persuasion to get Westinghouse to take this course of action. As you know Westinghouse design and produce the AP1000 which is a potential nuclear power station which is being built in China and several other countries throughout the world that could be built in the UK and is being built in China and several other countries throughout the world.

Westinghouse is an excellent company and their programme that is being undertaken in China by building 4 nuclear power stations is at present to cost; on time and meets world safety standards. Currently the only company that can produce these large forgings for PWR nuclear power stations is the Japan Steel Corporation and they have a waiting list; this would mean that if the UK is to develop a nuclear new build programme which our union believes is absolutely essential, then we will not be able to do so because there will not be enough capacity to produce the large precision forgings.

Our Union has always made it clear that this particular investment is essential if we are to become an Engineering Global Supply Chain player producing components and equipment to supply the energy industry, whether it be clean coal, offshore wind or nuclear. Our union believes that there is a massive opportunity for the UK as outlined in a recent advertisement we placed in the House Magazine (copy attached). Further, if the UK is to meet its carbon targets which are now becoming extremely demanding, then we must develop electric cars. If we develop electric cars, the only way we can power same is to use base load nuclear power to an even greater extent than we are doing.

The uncertainty that the review of this loan and other loans is creating could cost the UK thousands of jobs if there is not a quick and positive decision by the new Coalition Government to support same,

I would request an urgent meeting with you to put forward our Union's viewpoint.

Yours sincerely,

DOUGIE ROONEY National Officer

Att.

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