Rolls-Royce has shortlisted six locations for its first factory for small nuclear power stations. We look at the impact on regions & local businesses
It’s great news that engineering giant Rolls-Royce has now shortlisted six possible locations for its first factory relating to small nuclear power stations. This is the first of three offsite assembly factories building key elements of the next generation small modular reactor power stations (SMRs). Construction will begin once Rolls-Royce receives the go ahead to build a fleet of SMRs in the UK.
The first factory is the largest and most complex and will create more than 200 permanent roles. This will significantly boost recruitment levels in the region, reducing post-pandemic unemployment. The people and communities in the area will directly benefit from not only the better employment rates, but potentially also better productivity and pay. As well as providing long-term skilled jobs, the new factory will result in significant socio-economic investment in the area. Projects such as this will undoubtedly ease the pressure of cost of living in line with the UK Government’s ambitions for levelling up post-pandemic.
At Browne Jacobson, our energy and infrastructure team have been following the impact of other nuclear-related projects on surrounding areas. We have seen how Hinkley Point C (the first nuclear power station to be built in the UK for half a decade) has had a positive effect on smaller businesses. It has helped to ease the cost of living and boost the wider regional economy, with improved transport connections, education facilities, and much more.
Many in the South West business community have positively embraced this major project on their doorstep. We have seen several SME businesses exploit the opportunities provided by local/government funded bodies offering training, supply chain leads, information and networking opportunities. They have embraced this as a “step up the ladder”, to achieve higher standards and win better quality work. As they have “stepped up”, this has enabled other, smaller businesses to expand into newly created space in the market.
The wide variety of types and sizes of local businesses involved in some way or other in the Hinkley Point C project is astonishing. We have seen how some of these companies have effected enormous transformation in their organisations, business models, and approach to markets. We have helped them facilitate change to their HR, Data, IP and Technology as well as their Contracts and approach to Risk and Compliance. In many instances (and as is often the case on any major project), an initial “one off” minimal involvement has led to repeat business, referrals across the project (and outside it), and significant increases in headcount and turnover as a result. These successful transformations are now “lean”, growing businesses, often with an innovative spin and technological edge they did not previously have.
There is no doubt that whichever location is chosen for the first SMR, a significant number of jobs, manufacturing and otherwise will be created. There will be significant opportunities to up-skill and level-up. Companies wanting to get involved in the nuclear industry should look to streamline their businesses in terms of rationalising and integrating their systems and processes with a view to heightened efficiencies, through full data collection and transparency. They should investigate enhancing their ISO (or equivalent) qualifications and potentially look to achieve the Fit for Nuclear (F4N) status.
Nuclear is an absolute cornerstone of the UK’s energy strategy over the next 50 years and Rolls-Royce’s first SMR factory is one of several other nuclear-related projects on the horizon. Involvement in this, and any other major project, has the added comfort that once formally approved, this ‘critical infrastructure’ is likely to continue regardless of the eco-political climate.
This kind of project will offer wide-reaching benefits to the local community, including post-pandemic recruitment and easing the pressure of cost of living. In the context of the levelling up agenda, the wider regional economy will be boosted across all sectors including transport, housing, hotels, leisure, retail and more.
This article was originally published by New Civil Engineer in July 2022.
In this session, we examined the legal framework around grant funded collaborations and discussed the key risks to be aware of, including IP ownership and compliance with grant terms.
National law firm Browne Jacobson has advised long standing retail client, Wilko on the sale and leaseback of its Nottinghamshire distribution centre in Worksop to logistics specialist DHL for £48m.
The war on plastic is being taken to a new level, and businesses that don’t consider sourcing recycled packaging materials could face costly implications.
Earlier in the year a number of fashion retailers, boldly announced the introduction of a charging fee for returning any product purchased via their online store. Yet, despite this commercial, and perhaps somewhat controversial decision, at least one major fashion giant that adopted this approach has recorded ‘historic highs’ in its September profits. Browne Jacobson partner, Cat Driscoll who heads up the firm’s commercial team in Manchester and is also head of its Fashion & Beauty sector discusses whether this change has put the average consumer off and whether the days of free returns are long gone.
Logistics company Eddie Stobart has been fined £133,000, after a series of failures which took place whilst excavation work was carried out, exposing its staff to asbestos.
Browne Jacobson has appointed Amy Chapman, the former Group Legal Director of global built environment experts Mace Group, as its first Non-Executive Director (NED) of its Construction & Real Estate sector strategy board.
The fashion industry has a mountain to climb when it comes to sustainability. More than 8% of greenhouse gas emissions come from the apparel and footwear industries, and approaching three-fifths of all clothing ends up in incinerators or landfill within a year of being made.
In a judgment handed down yesterday the Supreme Court has affirmed that a so called “creditor duty” exists for directors such that in some circumstances company directors are required to act in accordance with, or to consider the interests of creditors. Those circumstances potentially arise when a company is insolvent or where there is a “probability” of an insolvency. We explore below the “trigger” for such a test to apply and its implications.
Created at the end of the Brexit transition period, Retained EU Law is a category of domestic law that consists of EU-derived legislation retained in our domestic legal framework by the European Union (Withdrawal) Act 2018. This was never intended to be a permanent arrangement as parliament promised to deal with retained EU law through the Retained EU Law (Revocation and Reform) Bill (the “Bill”).
Browne Jacobson’s lawyers have advised Suez SA and its shareholders on its acquisition of its former UK waste management business – Suez R&R UK - from French headquartered business Veolia for an enterprise value of £2 billion.
The Supreme Court has unanimously dismissed the BTI v Sequana appeal and reviewed the existence, content and engagement of the so-called ‘creditor duty’; being the point at which the interest of creditors is said to intrude upon the decision-making of directors of companies in financial distress.
It was reported in May 2022 that the BMW-owned manufacturer had been forced to put a temporary stop on the production of all manual transmission vehicles due to the global semi-conductor shortage and the war in Ukraine. Mini stated that the move was made in order to "ensure production stability".
