Hinkley Point C has once again been in the news following the signing of a Strategic Investment Agreement between EDF and China General Nuclear Power Corporation (CGN).
Under the new Strategic Investment Agreement, EDF’s share in Hinkley Point C will be 66.5 per cent and CGN’s will be 33.5 per cent. Without reducing this initial stake below 50 per cent, EDF intends to bring other investors into the project. CGN is expected to make its investment in the UK through its new company called General Nuclear International (GNI).
This news means that EDF Energy and its partner investors are now close to starting the multi-billion pound construction of Hinkley Point C, which is expected to produce enough energy to supply seven per cent of the country’s needs and power about six million homes.
As part of its procurement strategy, EDF Energy has partnered with the Somerset Chamber of Commerce to manage the Hinkley Supply Chain Team which is delivering a supply chain solution for EDF Energy and its contractors by engaging with both Somerset and South West businesses that want to become part of the supply chain.
Rob Chedzoy, Partner at Milsted Langdon, said: “Many of our clients will see significant benefits from the Hinkley development, even if they are not directly involved in the supply chain.
“There are some significant risks however, given the already tight local labour market, particularly for high value staff with transferrable skills. We can help those involved in Hinkley work, or hoping to be involved over the coming years, as well as those actively deciding to concentrate on their existing business.
“As well as assisting with financial modelling and projections for those looking to engage in Hinkley related work, we can also help with areas such as share options to tie in key members of staff.
“Whether you are directly involved with the development, part of the supply chain, servicing workers in the local area, or own properties nearby, it will be hard to avoid the impact of this enormous project over the coming years.”
Whatever the nature of your business, we would be delighted to help you address the challenges that lie ahead. Our corporate finance, tax and Business Innovation teams are well placed to help. If you would like to discuss planning for the changes that will arise over the next few years, please call Rob Chedzoy on 01823 445566 or email: rchedzoy@milstedlangdon.co.uk.