Hitachi has declared it will stop its ongoing work on the nuclear plant in Anglesey part of the UK. This was a multi-billion dollar program. One of the reasons for the same is initial speculation that stated high and rising construction costs involved in the facility. Though the company was talking with the government officials since last June, the news still comes as a shock.

Owing to this there might be thousands of jobs in jeopardy at the Wylfa Newydd Plant in the island of Anglesey, North wales region. The nuclear reactors, were expected to be functioning by 2020s and would involve construction of two nuclear reactors. Hitachi said the decision would cost it a projected 300bn yen (£2.1bn) in expenditures, apart from another 300bn yen as “extraordinary losses”. Hitachi said it was suspending the project “from the lookout of its economic rationality as a private enterprise”.

However, there are other factors to be considered. The nuclear plant was intended to have a production capacity of 2,900 MW with an operational life of 60 years. This has led to the UK’s nuclear policy under fresh scrutiny. Wylfa Nuclear Power Station was a Magnox Power station and is situated on the west of Cemes Bay on the island of Anglesey, North Wales. The two reactors were constructed in the years of 1963 and were operational in 1971. However, in 2012 the reactor 2 was shut down and in 2015 reactor 1 was shut down. Owing to this shutdown, new construction of nuclear power stations were proposed in a site closer to the old plant.

A spokesperson for the Department for Business, Energy & Industrial Strategy (BEIS) said: “As the Business Secretary [Greg Clark] set out in June, any deal needs to represent value for money and be the right one for UK consumers and taxpayers. Furthermore, despite extensive negotiations and hard work by all sides, the government and Hitachi are unable to reach agreement to proceed at this stage.”

Duncan Hawthorne, the chief executive of Hitachi’s Horizon subsidiary, said the “site of Anglesey is the best site for nuclear development in the UK” and that the company would “keep the option to resume development in future”. However currently this sure is a disappointing news, for everyone involved. Especially the Nuclear Industry Association.