{"text":[[{"start":10.35,"text":"Rolls-Royce is facing mounting criticism from politicians and industry figures for a decision to outsource the core parts of a multibillion-pound UK government plan for three small nuclear reactors to South Korea. "}],[{"start":24.1,"text":"The announcement by the British engineering giant, the lead investor in a consortium developing the reactors, has raised questions about whether the government’s target of 70 per cent of the project being British-made will be met."}],[{"start":36.05,"text":"Rolls-Royce SMR’s selection of South Korea’s Doosan Enerbility to finalise designs for key components for the small nuclear reactors has triggered warnings from industry representatives that the UK is squandering a chance to build its own supply chain for the technology."}],[{"start":52.05,"text":"Liam Byrne, Labour MP and chair of parliament’s business and trade committee, said he would be writing to ministers seeking clarification as to how Rolls-Royce’s announcement is compatible with the 70 per cent target. "}],[{"start":65.05,"text":"“This decision raises serious questions about whether the government has a credible plan to turn its commitment to ‘Buy British’ into reality,” he said. “If taxpayers are helping fund a new strategic industry, we need to understand why key contracts are going overseas and what steps are being taken to build British capability for the future.”"}],[{"start":85.8,"text":"Last week’s announcement by Rolls-Royce SMR came just two days after chancellor Rachel Reeves had written to ministers urging them to “buy British” by awarding more government contracts to domestic companies in sectors including steel and energy infrastructure."}],[{"start":101.3,"text":"Gareth Stace, director-general of UK Steel, said the decision was “extremely disappointing” and at odds with the government’s own industrial strategy aimed at supporting British industry, energy security and supply chain resilience. "}],[{"start":114.3,"text":"“The UK’s nuclear renaissance should be an opportunity to create jobs, investment and industrial capability here in Britain. It cannot simply become a vehicle for taking public money and then exporting the economic value overseas,” he added."}],[{"start":128.4,"text":"The contract for Rolls-Royce SMR to build three small modular reactors (SMRs) at Wylfa in North Wales was signed in April with UK government body Great British Energy as part of a plan to invest £2.6bn in the technology over the course of the parliament. "}],[{"start":146.4,"text":"The UK’s National Wealth Fund, a government-backed policy bank that promises to “unlock Britain’s future”, is also committing up to £599mn to Rolls-Royce SMR to support the development of its small modular reactors. "}],[{"start":161.3,"text":"Industry insiders said they had hoped that the group would invest in fabricating the new reactors in the UK, with inputs from British companies such as Sheffield Forgemasters, which was nationalised in 2021 to preserve the UK nuclear-submarine build capability."}],[{"start":177.25,"text":"Instead, critics said they feared the announcement by Rolls-Royce SMR means that core elements of the “nuclear islands” — described as the equivalent to the engines in a car — are now likely to be built in South Korea, leaving UK suppliers to produce lower-value components."}],[{"start":194.6,"text":"Under the agreement announced last week, Doosan and Škoda will undertake early production work for key components of the nuclear islands, including for the reactor pressure vessels. "}],[{"start":204.95,"text":"Doosan is a global leader in nuclear power equipment and produces entire reactor vessels. Sheffield Forgemasters produces forgings which are a component in the vessels. "}],[{"start":215.14999999999998,"text":"A person close to Forgemasters said it was a “perverse outcome” that the UK government should invest over £500mn in saving the strategically important facility, only to see it being marginalised in the UK’s own SMR supply chain."}],[{"start":229.2,"text":"Before winning the contract, Rolls-Royce SMR told MPs on parliament’s Energy Security & Net Zero Committee in February last year that it was “unashamedly Team UK” and that “up to 78 per cent” of the reactor could be made in the UK. "}],[{"start":244.95,"text":"When asked this week, Rolls-Royce SMR declined to comment on what proportion of content would be made in the UK under current plans, saying only that “88 per cent of our spend since the business was established [in 2021] has been with UK-based businesses — hundreds of millions of pounds”. "}],[{"start":264.5,"text":"Governments are backing SMRs, which are smaller than the conventional gigawatt-scale plants that have been built around the world, to provide a reliable source of electricity to meet rising demand without carbon emissions. "}],[{"start":278.2,"text":"The International Energy Agency has estimated that more than 1,000 SMRs could be built by 2050, with cumulative investment of over $670bn in the sector. "}],[{"start":289.7,"text":"The situation has echoes of the UK’s failure to develop a stronger position in wind turbine manufacturing despite having the largest offshore wind market outside China. The UK does not have a national wind turbine maker, relying heavily on imports. "}],[{"start":304.09999999999997,"text":"Professor Keith Ridgway, who founded the UK’s Advanced Manufacturing Research Centre, said the UK, with its existing capabilities in nuclear submarine manufacturing in cities like Sheffield, was “perfectly placed” to be a world leader in SMRs."}],[{"start":318.59999999999997,"text":"South Yorkshire mayor Oliver Coppard said the Sheffield region, including Forgemasters and the University of Sheffield’s Advanced Manufacturing Research Centre, already had the foundations of a globally competitive SMR cluster."}],[{"start":331.29999999999995,"text":"“If key parts of production are moved overseas at this stage, there’s a real risk we miss a once‑in‑a-generation opportunity,” he added."}],[{"start":338.65,"text":"Rolls-Royce SMR said the company would “procure over 40 million components for each SMR” and it was “committed to maximising UK content for our first project, alongside Great British Energy — Nuclear, where competitive capability exists”. "}],[{"start":353.54999999999995,"text":"The Department for Energy Security and Net Zero said it was looking to “unlock a golden age” of nuclear power that would create thousands of jobs across the UK."}],[{"start":363.24999999999994,"text":"“Great British Energy — Nuclear’s ambition is that 70 per cent of supply chain products are British-built across the small modular reactor fleet,” a spokesperson added."}],[{"start":374.3999999999999,"text":"Additional reporting by Ashley Armstrong and Rachel Millard"}],[{"start":387.8999999999999,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1780654505_1329.mp3"}