Terry Macalister
The Guardian,
Thursday July 17, 2008
Rolls-Royce, one of the most prestigious names in manufacturing, has thrown its weight behind the nuclear power renaissance by unveiling plans for a division it believes could become one of its biggest.
The company, best known for its aircraft engines, said it was already working for companies with nuclear businesses such as EDF of France and wanted to act as a supplier in the construction and operation of new plants in both Britain and emerging markets such as China.
Sir John Rose, chief executive, said: "Our experience is directly applicable to all phases of new-build programmes that are planned in the UK and globally, and also to the upgrade of existing plants. Our capability is unique in the UK and matched by only a handful of companies worldwide."
Rolls-Royce stressed that while nuclear power stations could overtake its highly successful marine operation, which has 7,000 staff and annual revenues of £1.5bn, this could take many years.
The company is carrying out peer-review work on two nuclear power station design assessments for EDF and Westinghouse in the US. They are being put forward to the British government as part of an expected nuclear building programme in this country, which could see as many as eight plants built with the first ready to start in 2018 if all goes well.
Rolls-Royce has appointed a new president of civil nuclear and is set to establish a team of managers and staff to build up the business, which will be based in Derby, where it already has 1,200 staff.
The company claims to have been involved in the atomic business for half a century, largely through providing design, safety justification, nuclear manufacture and in-service support for the Royal Navy's nuclear reactors and operates atomic sites at Devonport and Dounreay.
Rolls-Royce also has some civil nuclear experience, having supplied components to Sizewell B in Suffolk. It also provides safety critical instrumentation to EDF's 58 nuclear plants in France and through the Data Systems & Solutions business it established in 1999.
The decision by Rolls-Royce to enter the nuclear arena will be welcomed by the government as it brings a credible British manufacturing name to a local market that could be dominated by the French through EDF and Areva.