Contracts worth more than £1.3bn at Hinkley Point C have already been awarded to South West businesses, according to government figures released last week. But this is just the tip of the iceberg according to the Hinkley Supply Chain Team, which says that the opportunity to benefit from the project and create an industrial legacy for the region is only just beginning.
Published by the Department for Business, Energy and Industrial Strategy (BEIS), the Hinkley Point C Wider Benefits Realisation Plan outlined that £650m has already been spent with businesses in the South West, with a further £700m worth of contracts entered into with regional suppliers.
Sam Evans, Head of Hinkley Supply Chain Engagement says: “With £1.3bn of contract value recently confirmed as going to Somerset and South West firms, the economic and skills boost to the region is significant. The contracts are being secured in a very competitive market that sees a national and international supply chain competing for work.
“The Hinkley Supply Chain Team has been championing the opportunity that Hinkley Point C construction brings, not only for the economic value and employment but also for the catalyst it represents to drive up skills, leadership and supplier capability. Our work in the last 12 months has engaged with 21 Tier 1 contractors, identified 84 work package opportunities and promoted over 1,600 supplier matches for these requirements.
“While much of the engagement so far has been focused on services, earthworks and early civil construction, the Hinkley Supply Chain Team is now progressing more of the manufacturing requirements as the project presents its mechanical and electrical contract opportunities. Engaging with local manufacturers to deliver these contracts is critical to develop the industrial legacy for the region that EDF Energy has outlined as a priority for the project.”
Chris Langdon, Interim CEO of Somerset of Commerce and Hinkley Supply Chain Project Lead, adds: “Large infrastructure projects like Hinkley Point C have the potential to be powerful catalysts that can drive skills, capability and competitiveness in regional supply chains. For this to happen, there needs to be real engagement with the full range of contract opportunities, particularly the more technical manufacturing elements.
“This engagement is now a live reality with Hinkley Point C, as the manufacturing work packages open up to support the mechanical and electrical contracts. There is a valuable opportunity here for collaboration between regional, national and international suppliers, given the scale and technical standards demanded.”
SWMAS Ltd is leading the Hinkley Supply Chain Programme and fully engaged on over £250million of manufacturing work packages that the regional supply chain could support. Engaging with the main contractor teams from BYLOR, Balfour Beatty, ACTAN, M&W Group, Ovivo and Balfour Beatty Bailey, this pipeline includes steel fabrication for civil construction and cooling water tunnels; supports, components and equipment for heating, ventilation and air conditioning contracts; and electrical contracts.
Nick Golding, Hinkley Supply Chain Programme Lead, comments: “It is great to be supporting businesses to meet the requirements that the nuclear industry demands, particularly when they are rewarded with contracts. Many of these businesses are advanced engineering companies looking at the Hinkley project as a way to diversify into nuclear and help sustainably grow their business.
“Hinkley Point C represents a unique opportunity for many local firms to demonstrate their capability in one of the highest integrity environments and to use the experience to build relationships with new customers and access other new markets. SWMAS is pleased to be supporting the development of a capable and responsive supply chain across the region using Hinkley as the catalyst.”
Around 4,000 Somerset and South West businesses have registered on the Hinkley supply chain portal to date. For information on registration, work packages and much more, visit www.hinkleysupplychain.co.uk.