Photo/IllutrationThe proposed site for a new nuclear power plant on the island of Anglesey (Asahi Shimbun file photo)

Hitachi Ltd. is moving to suspend a nuclear plant construction project in Britain as it failed to secure further financial support from the British government to help cover the swelling costs, sources said.

A formal decision is expected at a board meeting as early as next week, the sources said.

Hitachi was struggling to raise funds from investors and calling for the British government, which was expected to provide loan guarantees, to expand its assistance.

But no substantial progress was apparently made during a meeting between Prime Minister Shinzo Abe and British Prime Minister Theresa May in London on Jan. 10.

Hitachi concluded that it would be difficult to proceed with the project, which is estimated to cost about 3 trillion yen ($26 billion).

The project calls for construction of two reactors on the western British island of Anglesey. Hitachi, other Japanese investors and British investors were expected to invest 300 billion yen each, while the British government was expected to guarantee 2 trillion yen in loans.

If Hitachi decides to suspend the project, the company is expected to report 200 billion yen to 300 billion yen in losses for the current business year through March for the costs incurred in preparations, the sources said.