Unions fear fission if BNFL project division is sold off

Unions fear fission if BNFL project division is sold off

Nuclear group BNFL is facing opposition from unions over the proposed sale of its project management arm - which manages the decommissioning of nuclear sites - warning that it could end up in the hands of a private equity group.

BNFL's adviser, Rothschilds, has received a number of offers for British Nuclear Group Project Services, including some from private equity funds.

Dougie Rooney, Amicus national officer covering the nuclear industry, has written to BNFL finance director John Edwards stating: 'It would appear that a private equity/venture capital company could well purchase the business, and our union is opposed to that taking place because we feel it would simply lead to asset stripping, with the taxpayer being "ripped off".' The union is also concerned that the BNGPS, which employs some 730 people, bundles together several businesses, some of which should not be sold off.

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Rothschilds has solicited bids from potential industrial and private equity buyers. However, it is unclear whether BNFL would itself favour a sale to a private equity group. It believes BNGPS has significant opportunities in decommissioning work in the UK as well as in central and eastern Europe. It is already doing clean-up work on Russia's nuclear naval fleet.

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