Hitachi promises new nuclear plants following acquisition of Horizon project

The company has acquired the project, which owns sites at Wylfa on Anglesey and Oldbury, Gloucestershire, from original joint venture partners E.ON and RWE npower in a deal worth just under £7 million. It has pledged to build two or three power stations on each site and create up to 12,000 jobs during the construction phase.

The deal will be completed by the end of November, according to the Horizon website.

Prime Minister David Cameron described Hitachi's investment as a "decades-long, multi-billion pound vote of confidence in the UK".

"I am determined that Britain competes and thrives in the global race for investment," he said. "This is a decades-long, multi-billion pound vote of confidence in the UK that will contribute vital new infrastructure to power our economy. It will support up to 12,000 jobs during construction and thousands more permanent highly skilled roles once the new power plants are operational, as well as stimulating exciting new industrial investments in the UK's nuclear supply chain."

The Government will also create a new Nuclear Industry Council, to be chaired jointly by Government and industry representatives, to enable it to maximise the economic benefits of nuclear power, it said.

The previous owners announced the sale of Horizon, which was set up in 2009, earlier this year. According to the announcement, Hitachi's planned new infrastructure could generate power equivalent to up to 14 million homes over 60 years with the first plant ready to feed electricity into the grid in the first half of the 2020s. The company plans to build new Advanced Boiling Water Reactors to power its stations, subject to design approval from the Office for Nuclear Regulation and Environment Agency.

Hitachi has also committed to the use of UK suppliers as part of its plans, and has signed preliminary contracts with Rolls Royce and Hitachi. About 60% of the value of the first plant is expected to be sourced from within the UK with more for subsequent units, the Government said. The company has also committed to develop the workforce in the areas surrounding its sites.

Energy Secretary Ed Davey welcomed the company's "firm commitment" to involve the UK supply chain and local workforce, in comments echoed by Welsh Secretary David Jones in relation to the Anglesey site.

The Government also announced that a Nuclear Supply Chain Action Plan, developed in conjunction with the nuclear industry, would be published later this year. The Plan will be aimed at maximising the sector's potential for economic growth including employment, business and export opportunities, it said. It will also identify any potential barriers with a view to placing the supply chain in a stronger position to compete for nuclear-related opportunities.

"The new Council symbolises the long-term strategic partnership developing between the UK nuclear industry and the Government," said John Hutton, chair of the Nuclear Industry Association. "Through innovation and high-skilled job creation, the nuclear sector has the potential to be a driver of economic growth in the UK over the coming years. Our ambition is for it to be a globally recognised industry, with UK companies seeking and winning opportunities in the domestic and global nuclear markets."