The Trump administration has said it is ‘disappointed’ after the US was snubbed for the development of a new nuclear power site in Wales in favour of Britain’s Rolls-Royce SMR.
US ambassador Warren Stephens published a statement claiming Britain should choose ‘a different path’ in Wales.
He said: ‘We are extremely disappointed by this decision, not least because there are cheaper, faster and already-approved options to provide clean, safe energy at this same location.’
In October, the Trump administration signed an $80billion deal with US-based Westinghouse to build several of the same larger reactors proposed at Wylfa, Wales.
A source close to the British government said on Thursday: ‘This is the right choice for Britain. This is our flagship SMR programme, producing homegrown clean power with a British company and we have chosen the best site for it.’
The confirmation of a British site is a welcome step for jet engine maker Rolls-Royce, which upped its profit outlook on Thursday.
Princess Anne being shown a Rolls-Royce engine at the Airbus Asia Training Centre in Singapore this week
Rolls-Royce SMR will design Britain’s first small modular nuclear reactors, pending final contracts, which are expected to be signed later this year.
The first-of-its-kind nuclear power station is to be built on Anglesey will reportedly create up to 3,000 jobs and billions of pounds of investment.
The nuclear plant at Wylfa will be home to Britain’s first three small modular reactors, though the site could potentially hold up to eight.
Work is due to commence on site in 2026, with the aim of generating power by the mid 2030s.
Prime Minister Sir Keir Starmer said that Britain was once a world leader in nuclear power but ‘years of neglect and inertia has meant places like Anglesey have been let down and left behind. Today, that changes.’
In a trading update on Thursday, engineering group Rolls-Royce said it expects profit for the full-year to be 26 per cent higher than the previous financial year after a hefty boost from its defennce and civil aerospace arms.
The FTSE 100-listed business now has its sights set on an annual operating profit of between £3.1billion to £3.2billion, after upping its previous forecast of £2.7billion to £2.9billion. In the firm’s last financial year, it generated an operating profit of £2.5billion.
Large engine flying hours in the ten months to 31 October rose eight per cent year-on-year, 109 per cent above pre-Covid levels, Rolls-Royce said.
In its civil aerospace division, the company secured engine orders from IndiGo, Malaysia Airlines and others.
The business has benefited from tailwinds in the recovery of global air travel, which has strengthened its civil aerospace division, while heightened geopolitical tensions have led to governments boosting spending, providing steady demand for its defence arm.
In charge: Rolls-Royce chief executive has led a major turnaround scheme at the business
Chief Executive Tufan Erginbilgic, said: ‘Strong performance across the Group, driven by our actions and strategic initiatives, was in line with our expectations.
‘This builds further confidence in our Full Year 2025 guidance of underlying operating profit of between £3.1billion and £3.2billion and free cash flow of between £3.0billion and £3.1billion despite continued supply chain challenges.
‘We are continuing to progress our transformation programme, delivering profitable growth, and further strengthening our balance sheet.’
Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, said: ‘Rolls-Royce continues to cruise above the clouds, with its third-quarter update showing little sign of turbulence.
‘The group produces aeroplane engines for larger, long-haul planes.
‘Revenue growth this year is being boosted by the upward trend in engine-flying hours, which are now cruising at 109 per cent of pre-pandemic levels.
‘Margins are also improving thanks to contract renegotiation, operational efficiencies, and part upgrades, which are improving the time its engines spend on wing. All of this is helping Rolls-Royce convert the increased flying hours and revenue into profits.’
He added: ‘With high barriers to entry and few credible challengers, Rolls-Royce’s market position is strong.
‘The balance sheet is improving, free cash flow remains healthy, and the £1billion buyback is nearly complete.
‘All full-year guidance has been reiterated, but with a growing track record of overdelivering, don’t be surprised to see numbers to the upside at full-year results.’
Russ Mould, investment director at AJ Bell, said: ‘Even a slight upgrade to full-year guidance is not enough of a tailwind to sustain a Rolls-Royce share price which is trading at a record high.
‘CEO Tufan Erginbilgiç has led one of the most spectacular recovery efforts in UK corporate history since joining Rolls-Royce at the beginning of 2023. He won the market over with tough talk about the business being a burning platform and he has delivered tangible progress since too.’
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