[Edaily Reporter Seong Ju-won] Criticism is mounting in British political and industry circles over the decision by British engineering firm Rolls-Royce to entrust the production of key components for its Small Modular Reactor (SMR) project to South Korea’s #Doosan Enerbility. With the most critical part of this multi-billion-pound government-backed project being outsourced overseas, doubts have been raised about the feasibility of the “70% British-made” pledge.

According to the UK’s Financial Times (FT) on the 5th (local time), Rolls-Royce SMR officially announced on the 27th of last month that it would entrust the final design and initial production of components for the “nuclear island”—the core structure of the reactor—in the construction project for three SMRs in Wypah, North Wales, to Doosan Enerbility and the Czech company Škoda. The reactor pressure vessel is a prime example. The nuclear island is the part of a nuclear reactor that corresponds to the engine in a car.
◇ Backlash two days after the 'Buy British' letter
Backlash within the UK was fierce immediately following the announcement. This was because the decision came just two days after UK Chancellor of the Exchequer Rachel Reeves sent a letter to ministers urging a “Buy British” approach in the steel and energy infrastructure sectors.
Liam Byrne, the Labour Party’s chair of the Parliamentary Business and Trade Committee, stated, “I have serious doubts as to whether the government has a credible plan to turn the ‘Buy British’ pledge into reality,” and announced he would send a letter to ministers demanding an explanation. He added, “If taxpayers are funding new strategic industries, they need to understand why key contracts are going overseas.”
Gareth Stace, Director General of the Steel Association, criticized the decision, saying, “This decision is deeply disappointing. The UK’s nuclear renaissance should be an opportunity to create jobs and investment in the UK; it must not become a means of exporting economic value abroad after mobilizing public funds.”
◇"Saved with £500 million, yet left out in the cold"
The industry’s dissatisfaction is directed at one specific facility: Sheffield Forgemasters, which the UK government nationalized in 2021 to preserve the country’s nuclear submarine construction capabilities. This facility is capable of producing forged components for reactor pressure vessels. However, with Doosan Enerbility taking on the role of manufacturing the entire pressure vessel, Forgemasters is now likely to be limited to supplying low-value-added peripheral components.
A Forgemasters official stated, “It is a perverse outcome that the government has poured over £500 million (approximately 1.0354 trillion won) into this strategically important facility, only to sideline it from the UK’s own SMR supply chain.”
Oliver Copford, the South Yorkshire Regional Mayor, also warned, “If key parts of production are moved overseas at this stage, we risk missing out on a once-in-a-generation opportunity.” Professor Keith Ridgway, who founded the Advanced Manufacturing Research Centre (AMRC) in the UK, emphasized that the UK—with cities like Sheffield that possess nuclear submarine manufacturing capabilities—is in the “perfect position” to become a global leader in SMRs.
◇Rolls-Royce: "88% of our business is with UK companies"... but silent on government targets
This project includes a £2.6 billion contract with the government agency Great British Energy, along with an additional investment of up to £599 million from the UK National Investment Fund.
Rolls-Royce SMR explained, “Since the business was established in 2021, 88% of our spending has been with UK-based companies.” However, it avoided specifying the exact proportion of nuclear submarine components manufactured in the UK. The company had previously stated in Parliament last February, prior to winning the contract, that “up to 78% of the reactor could be manufactured in the UK.”
◇Following Wind Power, Now Nuclear Power… Is the UK Missing Another Supply Chain Opportunity?
The International Energy Agency (IEA) forecasts that more than 1,000 SMRs will be built worldwide by 2050, with cumulative investment exceeding $670 billion (approximately 1,033.274 trillion won).
There is growing concern within the industry that the UK may repeat the mistakes it made with offshore wind. Despite possessing the world’s largest offshore wind market outside of China, the UK failed to cultivate its own turbine manufacturers and has become reliant on imports. Experts point out that in the case of SMRs, if the UK fails to secure a leading position before the initial supply chain structure solidifies, it will be difficult to recover in the long term.
The UK government maintains its goal of “sourcing 70% of the supply chain for all SMR facilities from the UK.” The key question is how to demonstrate this target numerically, given that Rolls-Royce has transferred the core of its nuclear technology overseas. The response from the government and Rolls-Royce to the UK Parliament’s demand for clarification is expected to be the next turning point.