Yahoo Finance Teesside factory serving offshore wind boom to create 2,250 jobs
A maker of parts for wind farms is to build a factory in the North East that will create more than 2,000 jobs, in a boost for a region seeking an industrial revival.
South Korea's SeAH Wind will invest up to £300m to make steel foundations for offshore wind turbines from a 90-acre site in Teesworks next to the River Tees.
It is expected to create 750 direct jobs and 1,500 more in the supply chain, and will be fully up and running by 2026.
The area was given freeport status in late 2021, creating an attractive tax regime for businesses including stamp duty and business rates relief.
The new state-owned UK Infrastructure Bank is investing £107m to help create a new quay next to where the factory will be built, to serve the offshore wind sector.
The Government wants to quadruple UK offshore wind capacity by 2030, and is keen to make sure jobs from the expansion are created in the UK, amid concerns that too many so far have gone abroad.
Joosung Lee, chief executive of SeAH Steel Holdings, said the company wanted to "contribute to the UK offshore wind industry by working with the UK Government.”
He added: "We are pleased to take the first yet significant step for this goal in Teesside. We will endeavour to make our factory globally competitive as well as become a good member of the community.”
The investment is a boost for Ben Houchen, Tees Valley’s Conservative mayor. SeAH had previously planned to develop a parts factory on the south bank of the Humber, North Lincolnshire.
Houchen said: "This is another transformational project that places Teesside as the UK lead for clean, green manufacturing.
“SeAH is an internationally recognised manufacturing company with an incredible reputation for quality and it’s a real coup that we’ve been able to secure their investment for Teesside.”
Councillor Mary Lanigan, leader of Redcar and Cleveland Council, said SeAH was "putting its faith in Teesworks and the Teesside workforce to deliver an industry of the future and provide well-paid, quality jobs in Redcar and Cleveland."
She added: “We have always known about the potential of the site and now it is fantastic to see that potential starting to be realised.”
Construction is expected to start in July.
Peter Stephenson, executive chairman of Able Group, which is developing the Able Marine Energy Park (AMEP) where SeAH had planned to put its factory, said SeAH had switched sites as it needed to start building its factory in the second quarter to meet an order. AMEP is still trying to secure commitments from enough manufacturers to be able to fund its plans.
He added: “Our greatest concern, however, is that we also now find ourselves having to compete with what, in reality, is a taxpayer funded development on the Tees.
"Whilst recognising that AMEP has been offered grant support from Government, the reality is that this pales into insignificance compared to the levels of subsidy with which we now have to compete against.”
