Babcock lands 10-year deal to build nuclear equipment for Sellafield

Outsourcer Babcock has sealed a decade-long deal to design and build the specialist equipment needed to treat nuclear waste at the giant Sellafield atomic site in Cumbria.
Worth ?95m over the first three years of the deal’s life, Babcock’s Cavendish Nuclear subsidiary will develop and construct the handling and containment equipment at the company’s Rosyth Dockyard.
The company is also involved in the construction of new aircraft carriers for the Royal Navy at Rosyth, the first of which has now been delivered.
Babcock lands 10-year deal to build nuclear equipment for Sellafield

Babcock will build the kit at the Rosyth dockyard where it works on the construction of the Royal Navy's new aircraft carriers

Aircraft Carrier Alliance
Babcock said the recently refurbished Rosyth had a “proven track record of delivering large-scale complex products”.
Virtual reality technology will be used in the Sellafield project, with customers able to examine designs in a computer-generated world to check the ergonomics and identify any problems before the equipment goes into production.
Winning the Sellafield deal is a welcome boost for Babcock. In March the company was part of a consortium that had its ?6.1bn contract to decommission Britain’s ageing Magnox nuclear reactors terminated early by the Government. 
Babcock has a 65pc stake in the work, which the Nuclear Decommissioning Authority said would now end after five years instead of 15.
It was made clear that Babcock’s work was not at fault but that the way the contract was awarded was mishandled.
As they started work decommissioning the 13 sites, it quickly became apparent to Babcock and its partners that far more needed to be done than was included in the scale of the contract.
The reference to the use of virtual reality testing in the new Sellafield contract could be a sign that Babcock wants to avoid finding itself in a similar situation as with the Magnox deal.
Archie Bethel, chief executive of Babcock, said the “strategically important” contract would see the company “share best practice” with its UK supply chain.
The contract was given a warm reception by investors, with shares in Babcock rising almost 3pc to 703p, making it one the largest risers in the FTSE 250, to which the company was recently demoted.
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