Unite urges Cable to back Sheffield Forgemasters
3 June 2010
Unite the union has written (see notes to editors) to Vince
Cable, secretary of state for Business, Innovation and Skills
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
£80 million loan to Sheffield Forgemasters to help pay for a new
forging press which will place the company at the top of the £40
billion 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 £80 million given to
Sheffield Forgemasters to support the company’s 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:
Copy of letter sent to Vince Cable.
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, Unite national officer
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