U.K. Nuclear Project Sheds 400 Contractors

---

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Site preparation work on the U.K.'s first new nuclear plant in 20 years is progressing but up to 400 jobs look set to go as French energy giant Electricite de France (EPA:EDF) (EDF) (Paris) has yet to make a final investment decision (FID).

It is understood that 400 of the 650 employees involved in site preparation for the Hinkley Point C nuclear project will be axed as the next phase of the project is not ready to move forward. The proposed 3,300-megawatt (MW) project will use two European Pressurized Reactors (EPRs), which will be capable of generating enough power for 5 million homes -- approximately 7% of the U.K.'s total electricity demand when the plant is commissioned in 2018.

"EDF Energy has carried out extensive work with its contract partners to make the Hinkley Point C project ready for a final investment decision," the company outlined in a recent update. "The company has invested significantly in a series of preparatory activities including site preparations (earthworks, drainage works and culvert construction, concrete production facilities and welfare facilities) and roadworks. These works are now nearing completion. The next phase of work on site and in the associated developments will require a substantial increase in spending levels, and will begin as soon as the final investment decision has been made."

Speaking to media, Humphrey Cadoux-Hudson, EDF Energy's managing director for the Nuclear New Build (NNB) company overseeing the project, explained: "Clearly this announcement has practical implications for people engaged in activities throughout NNB, but especially for contractors working on site and we are working with our contractor and trade union partners to manage these. During this time our focus across NNB should be on doing everything we can to bring our spend rate down whilst prioritising those activities that help deliver HPC FID and de-risk the project."

Unions reacted angrily to the news. Phil Whitehurst, National Officer for construction with the U.K.'s energy and engineering workers union, NMB, commented: "The news from the French Government owned utility company EDF, that a 45 day consultation for redundancy will start regarding 400 employees on Hinkley Point C project is devastating. The problem seems to be the stalled Final Investment Decision (FID), but with billions of pounds already spent by EDF on the project, it beggars belief that this decision was not made last year".

"Because the expected collapse of the licensed reactor manufacturer AREVA due to financial problems, and the Chinese investors coming into the equation with ever increasing demands, it looks uncertain now that EDF can categorically guarantee this project will proceed under their leadership."

The project received the green light from the European Commission (E.C.) in October, after a lengthy investigation ruled that the U.K. government's deal with EDF to offer a guaranteed electricity price for 35 years did not breach E.U. state aid rules. For additional information, see October 9, 2014, article - Europe Green Lights U.K. Nuclear Project.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.