The new factory will be the first Rolls-Royce site to manufacture the ‘heavy vessels’ for its Small Modular Reactor (SMR) power station.
A total of 200 jobs are set to be created and the factory is expected to be around 23,000 square metres in size – equivalent to three football pitches.
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Construction will begin once Rolls-Royce SMR receives the go-ahead to build a fleet of SMRs in the UK.
The locations of the final shortlisted sites include:
North East – IAMP Sunderland
Forrest Park Newton Aycliffe
North Yorkshire – Catterick 53, Richmond
Wales – Gateway, Deeside
Yorkshire - Ferrybridge
Greater Lincolnshire - Grimsby & Pioneer Park, Stallingborough
Cumbria – Kingmoor Park, Carlisle
Rolls-Royce SMR Chief Executive, Tom Samson, said: “I would like to thank everyone who sent in a submission suggesting locations in their region for the first Rolls-Royce SMR factory.
"The response was fantastic and shows the ambition and appetite of the UK to build and operate a fleet of SMRs which will provide affordable, low-carbon electricity for generations to come.
“The final location will come from the shortlist and will result in significant investment, long-term high-skilled jobs and will support the UK Government’s aspirations for levelling-up. Today’s announcement is another example of the pace of our project and why Rolls-Royce SMR is the UK’s domestic nuclear energy champion.”
The new factory will cost around £100 to £200 million and will create long-term high-skilled jobs.
Secretary of State for Business Energy and Industrial Strategy, Rt Hon Kwasi Kwarteng MP, said: “This is fantastic news for Sunderland, North Yorkshire, Deeside, Lincolnshire and Carlisle which, if these SMRs go ahead, could be at the forefront of manufacturing components for this British-made tech.
“Backed by £210m, SMRs have the potential to provide quicker and cheaper low-carbon nuclear power, and today’s announcement underlines the potential for new jobs around the country created by embracing this new technology.”