Unite the union has written to Vince Cable, secretary of state for Business, Innovation and Skills warning that failure to support loans including a crucial loan to an advanced manufacturing company, Sheffield Forgemasters, will cost thousands of jobs and jeopardise Britain's preparations to build a new generation of nuclear power stations.

Sheffield born Unite leader, Derek Simpson has also made a personal plea to Nick Clegg, who has his constituency in Sheffield, to use his influence to support the company. Mr Clegg emphasised the importance of 'special measures' for areas like Sheffield during the election campaign.

Peter Mandelson, Labour's former business secretary promised an £80 million loan to Sheffield Forgemasters to help pay for a new forging press which will place the company at the top of the £40 billion supply chain for the new wave of nuclear power stations. The ConDem coalition government recently announced it would review all Labour's spending decisions taken since January 1 putting the loan at risk.

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Unite is extremely concerned over the decision to review the loans rightly given by the previous government to a few engineering manufacturing firms to support investment projects. Unite is particularly concerned about the loan of £80 million given to Sheffield Forgemasters to support the company’s investment in a new large forge for the construction of nuclear power stations.

Derek Simpson, Unite's joint general secretary, said: "Failure to support Sheffield Forgemasters would be a colossal error of judgement. The company is unique, there is not another company in the world that has its skills and expertise. Britain needs companies like Sheffield Forgemasters if we are to meet our low carbon energy needs and build a modern, advanced manufacturing base.

"The uncertainty that the review of this loan and other loans is creating could cost the UK thousands of jobs if there is not a quick and positive decision by the new coalition government.

"Nick Clegg spent much of the election campaign talking about Sheffield and the need to support jobs in the area. If he is as proud of Sheffield as I am he will use his influence to do everything possible to support this very special company."

(CD/GK)