A North East development, which is one of the largest factories in the global offshore wind sector, is to expand and support more jobs after securing £225m of financing.
SeAH Wind UK has now made an additional £225m investment into wind technology manufacturing in Teesside. This brings its total investment into the site at Teesworks Freeport up to £900m.
UK Export Finance and Korea Trade Insurance Corporation have guaranteed new financing for the investment.
This has unlocked new £225m in financing from Standard Chartered Bank and HSBC UK for SeAH Steel Holding’s construction of a wind tech factory near Redcar.
Chris Sohn, chief executive of SeAH Wind UK, said:
“With the proactive support of UKEF, our project is progressing smoothly. As we approach the completion of the factory construction, we are committed to ensuring its successful finalisation. We aim to become the first monopile manufacturing company in the UK and make a significant contribution to the UK economy.”
Wind monopiles act as the foundation for most offshore wind turbines and are critical to the growth of the global renewable energy sector. Upon completion of the factory, SeAH Wind UK will export to US and European markets.
New financing means that the factory will be able to produce even bigger monopiles and a wider range of products to meet industry demands, supporting the UK’s place in the global offshore wind supply chain.
Tim Reid, chief executive of UK Export Finance, said:
“This investment shows that there is international confidence in the UK economy and its ability to support the industries of tomorrow.
“UK Export Finance is helping to secure overseas investment in Teesside and around the UK through its financing offer. By working with HSBC UK, Standard Chartered and K-Sure to support investment into this project, the government is bolstering North-East England’s position as a leader in renewable energy expertise.”
The project will create up to 750 jobs by 2027 – a milestone in the development of a thriving offshore wind and renewables industry in North East England.
Ian Stuart, chief executive of HSBC UK, said the plant will play an “essential role in addressing the growing demand for renewable energy”.
“This project underscores the importance of export finance in helping our clients grow their operations globally and facilitating their journey to net zero,” Stuart added.
Yoshi Ichikawa, head of structured export finance for Europe at Standard Chartered, said:
“We are proud to build on our previous financing provided in November 2023, to support SeAH Group’s additional investment and enhancement of the UK supply chain in the wind sector.
“It is an example of the important role we play in helping our clients and sectors to make credible progress on their net zero ambitions, while supporting economic development across our markets.”
Source: insidermedia
