Based in Teesside, one of the world's largest offshore wind
technology factories will become even bigger after new government
support for a South Korean investor.
Supported by backing from UK Export Finance (UKEF), SeAH Wind UK
has now made an additional £225 million investment into wind
technology manufacturing in Teesside. This brings their total
investment into the site at Teesworks Freeport up to £900
million.
This was made possible after SeAH Steel Holding received
financial guarantees from UKEF and Korea Trade Insurance
Corporation (K-Sure) – the UK and South Korean export credit
agencies – meaning that it could access £225 million in new
financing for its ongoing factory build.
UKEF and K-Sure first supported the project in 2023. New support
brings their joint backing for this project up to £590 million,
with Standard Chartered Bank and HSBC UK providing the
finance.
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.
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.
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.
Tim Reid, CEO 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.
Ian Stuart, CEO of HSBC UK, said:
We are delighted to provide our continuing support to SeAH Group
for its new offshore wind monopile manufacturing factory in
Teesside, North-East England. Through its expanded manufacturing
capabilities, the factory will significantly contribute to the
needs of the offshore wind industry and 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.
Yoshi Ichikawa, Head of Structured Export Finance for
Europe, 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.
SeAH Wind UK, a subsidiary of South Korean steel company SeAH
Steel Holding, announced its decision to invest and broke ground
at Teesworks Freeport in 2022.
The ongoing construction has already created major contracts for
the UK supply chain in manufacturing, construction and logistics,
including a £100 million contract for British Steel.
UKEF's support was provided under the Export Development Guarantee
(EDG) product, which is available for overseas companies
investing in new UK exporting opportunities and has also secured
a major investment into Welsh paper manufacturing at Shotton Mill, Deeside.
Notes to editors
-
UKEF's Export Development Guarantee (EDG) helps companies who
export from or plan to export from the UK access high-value
loan facilities for general working capital or capital
expenditure purposes.
-
Of the new financing, UKEF guaranteed over £157 million
whilst K-Sure guaranteed over £67 million.
-
This follows previous financing worth £367 million in 2023,
of which £257 million was guaranteed by UKEF and £110 million
by K-Sure.
