The Business Secretary Lord Mandelson and Chancellor Alistair Darling today announced a landmark multi million pound investment into Yorkshire and Humber’s manufacturing industry, putting the region at the very heart of the UK’s energy sector.

South Yorkshire has been chosen as the base for the UK's new Nuclear Advanced Manufacturing Research Centre (NAMRC), as part of the Government's Low Carbon Industry Strategy. The NAMRC will provide a focal point for the bulk of the UK civil nuclear manufacturing industry supply chain, ensuring that manufacturers in the UK have the capability and capacity required to compete for nuclear new build in the UK and globally, from skills training to research and development.

Yorkshire Forward is investing up to £10m in the new centre which will be based on the world leading Advanced Manufacturing Park in South Yorkshire and led by the University of Sheffield in partnership with the University of Manchester with Rolls- Royce as a lead industrial partner.

In a further boost to the region's manufacturing strength, Lord Mandelson announced that Rolls-Royce's planned civil nuclear facility will also be developed in South Yorkshire. The facility will manufacture, assemble and test high quality components that are essential to meet the requirements of the planned new civil nuclear power plants across the UK, worth in excess of £1bn a year. This investment will create more than 300 jobs, with hundreds more expected to be made throughout industry supply chains, across the region.

Working closely with Yorkshire Forward, the Region's Development Agency, the industry giant acknowledged Yorkshire and Humber's position as the centre for excellence in advanced manufacturing and chose South Yorkshire, despite strong international competition, as a result of the strong skills base already present in the region.

Tom Riordan, Chief Executive of Yorkshire Forward comments: "Yorkshire Forward has worked closely with Rolls-Royce and the Government to secure both investments and this announcement is incredible news for a part of our region hit hard by the recession.  It recognises the cutting edge facilities and the top quality of our academic and business skills base.

"The UK's nuclear programme is expected to create over 4,500 engineering jobs over the next 25 years and well over a £1bn a year to the industry. Yorkshire Forward's investment into both the Nuclear Advanced Manufacturing Research Centre and Rolls-Royce's new manufacturing facility will firmly put the region at the very heart of the UK's energy sector.  This cements our position as a centre of excellence for manufacturing, to a global marketplace, securing and creating jobs now and in the future."

Lord 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."

Rosie Winterton, the Minister for Yorkshire and The Humber, said: "This latest substantial investment in the world class facilities we have at the Advanced Manufacturing Park in South Yorkshire demonstrates our leading role as a base for advanced manufacturing research and production.  It also confirms the vital role our universities play in our future economic growth.

"Yorkshire and The Humber has real potential in advanced engineering and materials and in being a world-leader for research and scientific development - and in the commercial exploitation of new technologies.

"I will continue to work with Central Government and regional partners to ensure our region gets the support and investment we need to secure our future as a world class manufacturing base."