CS Wind will build a new offshore tower manufacturing facility in Campbeltown, Scotland as a result of a multi-million pound investment from DONG Energy. This investment will give DONG Energy preferred access rights to towers for its offshore wind farms.
This will be the first facility in the UK that can manufacture towers for offshore wind turbines and will be located adjacent to CS Wind's current onshore facilities. It will be able to produce at least 50 towers a year and 70 jobs will be safeguarded as a result.
The investment will enable the contract for the first 95 towers built by CS Wind, which Siemens Wind Power has agreed to take, and will help in the establishment of a tower manufacturing facility in the UK.
Energy Minister Baroness Neville Rolfe said:
"Offshore wind continues to be a key element in delivering on the UK's clean energy commitments.
"We have seen £52bn of investment in renewable energy in the UK since 2010, and we are supporting more offshore wind than any other country in the world. This inward investment drives forward positive local supply chain partnerships like this between DONG Energy and CS Wind, delivering economic growth and creating jobs across Scotland and the UK."
International Trade Minister Greg Hands said:
"This new order follows agreement from three leading global companies, and the support of the Department for International Trade. It will safeguard 70 high-skilled jobs in Campbeltown, Scotland and potentially create many more.
"The investment shows global recognition of the UK's number one position in offshore wind and will lead to the first ever production of offshore wind towers in the UK."
Brent Cheshire, DONG Energy's UK Country Chairman, said:
"The UK is the world leader in offshore wind and a growing market for DONG Energy. Our investment means that we and other offshore wind developers will be able to source towers in the UK, which is fantastic news not just for us but the whole UK offshore industry.
"Developing the supply chain in the UK is a strategic priority for DONG Energy. We plan on building more wind farms here, so this investment now will ultimately help us meet our targets in reliably delivering projects on time while bringing down the cost of offshore wind."
Seong-Gon Gim, Chairman of CS Wind Corporation, said:
"DONG Energy's investment is a clear indication that developers in the UK are committed to using UK suppliers and helping to strengthen the supply chain.
"Thanks to our continuous effort to build an offshore facility in the UK and DONG Energy's significant contribution on investment, we are able to build this extension which will not only benefit other UK offshore wind farm developers but also secure 70 jobs in Campbeltown."
Last month, Siemens opened a blade factory in Hull which will contribute to the steadily increasing number of UK-manufactured components in offshore wind turbines.
Clark MacFarlane, Siemens Wind Power Limited MD, said:
"This is excellent news for both the offshore industry and the UK. We are seeing unparalleled investment in UK content, skills and in manufacturing for offshore wind, driving up UK content. We are delighted to be able to add a further step to continue our proven relationship with DONG Energy."