Hitachi announces £696 million Horizon takeover

The Japanese firm Hitachi has announced that it has bought the Horizon Nuclear Power for £696 million.

The takeover of the joint venture between RWE and Eon is expected to be completed by the end of November.

Hitachi said it intends to  build nuclear generators at Wylfa, Anglesey, and Oldbury, Gloucestershire, with the first plant potentially generating electricity by the first half of the 2020s. The Japanese company aims to build “two or three” 1300MW Advanced BWRs at each site. The reactor design has still to be licensed by the UK’s nuclear authorities, a process that could take several years.

RWE npower group CEO Volker Beckers said: “A huge amount of work has already been done by Horizon’s highly skilled workforce, and today’s announcement is a clear signal that the work done has significant value and that Government policy on new nuclear for the UK is on the right track.

“It’s an excellent deal for all concerned.”

The deal could create 6,000 jobs at each site during the construction phase and an additional 1,000 permanent positions once each site is up and running.

As part of the deal, Hitachi has announced they will be working with British companies Babcock International and Rolls-Royce to deliver the programme.

Prime Minister David Cameron warmly welcomed Hitachi and added “this is a decades-long, multi-billion pound vote of confidence in the UK, that will contribute vital new infrastructure to power our economy”.

Energy and Climate Change Secretary Ed Davey welcomed Hitachi’s “commitment to helping build a low carbon secure energy future for the UK”.