Plans for a major nuclear manufacturing facility in South Yorkshire have been scaled back after American company Holtec failed to secure preferred bidder status in the UK government’s small modular reactor (SMR) competition.
Holtec had proposed establishing a new factory at the GatewayEast site near Doncaster-Sheffield Airport, a move expected to generate 3,000 direct jobs and support an estimated 16,000 roles across the supply chain over two decades. However, the firm was not selected, with British engineering giant Rolls-Royce named the government’s preferred partner to lead SMR development in the UK.
In response to the decision, Holtec confirmed its plans for the South Yorkshire site will be reduced in scope, with job creation targets and timelines affected.
The UK government’s decision is part of a broader strategy to advance domestic small modular reactor (SMR) technology and expand nuclear energy capacity. The Rolls-Royce-led programme is expected to deliver a £2.5bn boost to the UK nuclear industry and reinforce local supply chain development, particularly through its ongoing collaboration with the Advanced Manufacturing Research Centre (AMRC) in Sheffield.
The outcome represents both a strategic win for UK manufacturing and a setback for inward investment ambitions in South Yorkshire.
