UK engineering company Sheffield Forgemasters will review its 15kt nuclear press project in early 2011.

It follows the cancellation of a UK government £80M loan due to budget constraints from the new government forcing the company to stop work on a new press for nuclear power plant parts.

The UK government now says it will look carefully at future proposals when the availability of public funds becomes clearer following a spending review.

Chief executive, Graham Honeyman, said: “The company has already invested significant amounts of time, energy and finances into the project and the period into 2011 is now essential for us.

“Sheffield Forgemasters needs to be in the best possible position to revisit this proposal early next year. For us to do this, we now need to concentrate on accelerating the growth of our group companies.”

He said it was important to remain focused on its other development opportunities based around its 10kt and 4kt forging presses.