The package includes a new GBP25m Nuclear Advanced Manufacturing Research Centre (NAMRC) that will be based in South Yorkshire alongside the Advanced Manufacturing Research Centre (AMRC). The research centre, which is likely to be up and running by the end of 2011, will be led by the University of Sheffield with Rolls-Royce as the lead industrial partner and supported by the University of Manchester.

Funding for the project comprises GBP15m from the Department of Business, Industry and Skills and GBP10m from the regional development agency, Yorkshire Forward.

In July, Rolls-Royce had revealed an investment programme that included GBP45m of government funding, in four new plants in the UK. Rolls-Royce has said that one of these plants will be in South Yorkshire, which will provide manufacturing technologies to deliver components for nuclear power plants.

Mr Mandelson also revealed a Nuclear Low Carbon Economic Area (LCEA) for both Yorkshire and the Northwest, led by both regional development agencies. The UK companies are expected to provide up to 70% of the work on construction of components for new nuclear power plants, and the LCEA will support the development of UK capability to win this business.

Mr Mandelson said, “We know that we have to make the transition to a low carbon future, and the government is determined to ensure that British businesses get the support they need to seize the business opportunities that transition creates.

“The civil nuclear sector is one of the key low carbon industries where the UK has the potential for job creation, economic growth and engineering and manufacturing excellence. Today’s announcement is about investing in our future. A greener, smarter, more skilled, more balanced British economy.”