Toshiba is to wind up its nuclear arm, which was leading a project to build a new power station in the UK.
The decision by the Japanese firm’s board is a huge blow to plans for a new nuclear plant at Moorside in Cumbria.
Unions attacked the Government for not intervening to ensure the project went ahead.
Toshiba said its NuGen business would start being wound up in the new year.
A statement from Tokyo said: “After considering the additional costs entailed in continuing to operate NuGen, Toshiba recognises that the economically rational decision is to withdraw from the
UK nuclear power plant construction project, and has resolved to take steps to wind up NuGen.”
NuGen said the announcement came after 18 months of negotiations with a range of potential new owners.
“Unfortunately, it has not been possible to successfully conclude those negotiations.
“NuGen has retained a team to support the implementation of a winding-up process and will work with Toshiba and its other stakeholders.
“Whilst NuGen will not be taking the project forward, the Moorside site in Cumbria remains a site designated by Government for nuclear new build, and it is now for the Nuclear Decommissioning
Authority as the owner of the site and the Government to determine its future.