4 Mar (NucNet): UK engineering giant Rolls-Royce has confirmed it is reviewing options for its civil nuclear business.
The company was responding to a report in The Sunday Times which said it has hired consultancy KPMG to find a buyer for its nuclear division, in a move which could result in a deal worth around £200m.
Rolls-Royce did not confirm or deny the report, but told NucNet today that it is “conducting a review of options for its international civil nuclear business”.
The division specialises in monitoring and control equipment for measuring the temperature and radiation levels from nuclear reactors.
The proposed move is thought to be part of chief executive Warren East’s plans to re-focus the engineering giant on its core jet engine, power generation turbine, and defence interests.
However, it also comes amidst growing uncertainty over the future of planned new reactors in the UK after a number of flagship projects were shelved.
Earlier this year Hitachi announced it was suspending the Wylfa nuclear project in Wales and Toshiba said it was winding up NuGen, the company overseeing plans to build three Westinghouse AP1000 units at Moorside in northwest England.
The Sunday Times suggested the proposed sale would not include Rolls-Royce’s work for the Hinkley Point C project. Last month Rolls-Royce signed a contract to provide diesel generators for backup power to Hinkley Point C.
Reports also said the sale will not affect the company’s involvement in a consortium working on plans for a new generation of small modular reactors.
In February the Financial Times reported that Rolls-Royce and its partners were asking the UK government for more than £200m in funding to develop a business that will build SMRs. The company was said to be seeking a sum “in the low hundreds of millions”.
Rolls-Royce confirmed to the Financial Times that its consortium was “in discussions with UK government officials that we hope could result in a significant joint investment in our power plant design.”
In July the Financial Times reported that Rolls-Royce was preparing to shut down its project to develop SMRs if the government does not make a long-term commitment to the technology, including financial support.
