Last updated 16:51, Thursday, 04 September 2008

THE future is looking bright for Barrow’s shipyard after the signing of an historic agreement.

The Love Barrow sign, hung on the side of the DDH in Barrow JOE RILEY REF: 0442245

BAE Systems has signed an “exploratory” deal with the Westinghouse Electric Company, a nuclear reactor designer and builder, which could see Barrow’s nuclear submarine builders construct parts for new nuclear power stations.

The success of the agreement depends on a number of factors, including the continued commitment of future UK governments to a nuclear revival which would see a new generation of nuclear power stations built to avoid dependence on overseas energy.

But observers say if BAE has backed a winner it could mean hundreds more jobs at the yard in five to ten years.

It could also help guarantee the lifespan of the Barrow yard and the prosperity of the town by giving BAE an additional string to its bow to add to submarine and surface ship building, and armaments manufacture skills.

The deal has come because of Barrow’s crucial expertise in building, installing and commissioning nuclear reactors, if only on a smaller submarine scale.

With the last nuke power station built in Britain in the early 1990s, Barrow is the only place currently using those skills in the UK.

Now BAE Systems nationally has signed a Memorandum of Understanding with Westinghouse, which is bidding to supply its successful reactor designs for the proposed UK nuke plants. At least eight new power stations are planned, each with at least two nuclear reactors.

Furness Enterprise chief executive Harry Knowles said: “I am delighted that BAE Systems are actually involved in this. Hopefully they will in the future become part of the supply chain building very specialist parts for nuclear power stations.”

He believes BAE would be able to play a part in the construction phase by supplying modules such as complex pipework for power stations.

He added: “I would anticipate we would not be looking at thousands of jobs, but we might be looking at hundreds in the future depending on the number of power stations they are planning to build and on whether Westinghouse gets the contracts.”

With all the hurdles, including planning inquiries, it could be five years at least before any work could begin with the first power stations probably built by 2020.

A spokesman for BAE, which is currently completing its 25th nuclear submarine, said: “Through the highly complex Astute nuclear-powered submarine programme, BAE Systems has the skills and expertise in nuclear reactors that can be utilised in other markets.

“Astute remains our core business. The MoU with Westinghouse is an agreement to explore ways in which BAE Systems may act as a contractor supporting involvement in the potential future UK civil nuclear power programme.

“It is too early to predict the outcome of these exploratory talks, but any involvement by BAE Systems will see us using existing skills, knowledge and expertise in order to sustain the existing skill base at our Submarine Solutions.”

It said BAE could assist in areas such as design, production, fabrication and integration of sub assemblies for nuclear plants and could supply structural and mechanical modules.

Westinghouse today said it had signed “three groundbreaking UK Nuclear Build Supply Chain agreements”.

It said: “Westinghouse Electric Company has today signed pioneering agreements with BAE Systems, Rolls-Royce and Doosan Babcock to collaborate on work associated with bringing the AP1000 nuclear power plant to the UK.”

It was “a milestone which may lead to between 70 and 80 per cent of the work and services required to construct the AP1000 being provided by the UK supply chain, securing valuable jobs in Britain”.