"Disappointed" US firm confirms scaling back of £1.5bn nuclear reactor factory in Doncaster

Less than two weeks ago, US giant Holtec selected the GatewayEast site next to Doncaster-Sheffield Airport, as the preferred location for its planned new UK factory and promised it would bring thousands of jobs to Doncaster.

But after it was confirmed that Rolls-Royce had been selected, Holtec immediately announced it would be reducing its planned Doncaster operation.

South Yorkshire Labour Mayor Oliver Coppard has also reacted with disappointment to the Government’s announcement.

A spokesperson for Holtec said: “Holtec is disappointed by the outcome of the Great British Nuclear Small Modular Reactor (SMR) tender but extends its congratulations to Rolls-Royce SMR.

“This decision by GBN means that Holtec's plans for a significant manufacturing facility in South Yorkshire will now be scaled back in size and delayed in terms of timeframe.

“Despite the outcome from this competition, Holtec remains resolute in its belief that Holtec's SMR-300 is among the most advanced, safe, and deployable reactor designs in the world.

"Our participation in the tender has further reinforced the global interest in our technology, and we are grateful for the opportunity to showcase our capabilities.

“Looking ahead, Holtec is intensifying its focus on partnerships with private-sector clients in the United Kingdom that can move at pace and international stakeholders who are seeking proven, scalable SMR solutions.

"With active engagements in North America, Asia, and other regions, we are well-positioned to bring clean, reliable nuclear energy to a broad range of applications-including industrial decarbonization, grid support, and remote power generation.

“Our commitment to innovation, safety, and energy security remains unwavering, and we thank our partners and supporters across the UK for their continued interest in Holtec's world class technology.”

Late last month, the company said it was entering detailed negotiations with the developer, Peel Land.

After evaluating 13 regions across the UK - Holtec – who have been working in the UK for nearly 30 years – chose South Yorkshire as its base to localise production in the region.

It said the location offered 80 hectares of development land adjacent to Doncaster-Sheffield Airport and that the planned factory would be the centrepiece of Holtec’s UK investment plans.

Analysis from economists estimated that the factory would generate £1.8bn GVA (£1.5bn from the proposed factory and £300m from professional engineering and technical services relating to SMR deployment), create 3,600 construction, 16,000+ supply chain, and 3,000 unionised engineering jobs over 20 years.

But those figures now seem to be in jeopardy with the Rolls-Royce announcement.

In May, Gareth Thomas, Director at Holtec Britain, said: “In Doncaster, Holtec’s plans for a new advanced manufacturing facility will create a new industrial renaissance for the nation.

"We are delivering tangible wins for the British economy - thousands of homegrown jobs, foreign direct investment, a new export market, the re-industrialisation of South Yorkshire, cementing US, UK, Korean and Japanese relations through our partners - all while lowering bills, and powering the economy through clean energy.”

“With the reopening of Doncaster-Sheffield Airport, we’re excited about the potential this site has to offer. Holtec is now finalising the factory business plan to support its Final Investment Decision.”

Local MPs and Mayor of Doncaster Ros Jones welcomed the news and Mayor Jones said: “This major investment is fantastic news for Doncaster and South Yorkshire. The GatewayEast development is the perfect location for Holtec Britain to build their new £1.5bn manufacturing facility.

"Not only will it create significant economic growth, but it will also deliver thousands of skilled, high-quality local jobs alongside developing supply chain opportunities and partnerships for our businesses”.

Reacting to today’s news, South Yorkshire’s Mayor Oliver Coppard said: “The government has today committed to backing nuclear, by selecting Rolls-Royce to build the next generation of Small Modular Nuclear reactors alongside progressing Sizewell C.

“I have to admit to some surprise that the government has only selected one bidder to lead that process.

"I’m obviously disappointed by the consequences that decision will have for Holtec, albeit reassured by the strength of our partnership and their continued commitment to South Yorkshire.

“I look forward to continuing our work with Rolls-Royce SMR, who are working closely with the world-class AMRC, as they develop their programme. I would like to congratulate them on their success in the competition process.

"I trust that they will prioritise British jobs and workers in the development of the £2.5bn programme, particularly those in South Yorkshire.

“Alongside the recent MoD announcement of a £426m investment at Sheffield Forgemasters, today’s decision will further cement South Yorkshire’s leading role in building the UK’s clean energy future, developing our energy security, while creating jobs, opportunities and economic growth across our region.”

No nuclear material will be dealt with at the site itself, with the reactors set to be a part of the drive towards Net Zero.

The factory intitally said it would create two reactors per year, to be supplied to nuclear facilities across the world.