Siemens to build wind turbine factory in the UK
Tuesday, March 30th, 2010![]() |
The decision comes after months of talks and is believed to have been finalised as a result of an important change in the budget last week, which brought public grants of upwards of £60m for ports to build green manufacturing hubs around them.
“With the new wind turbine production plant in the UK we’re pushing ahead with our strategy of investments in attractive growth markets for eco-friendly technology. In the foreseeable future the wind power market in the UK will be characterised by major offshore projects, and we’ll extend our market leadership with the new production plant,” said Peter Löscher, President and CEO of Siemens AG.
Andreas J. Goss, Siemens’ chief executive in the UK, said: “The UK government has created a stable framework to attract inward investment in renewables and offshore wind power in particular. The competition for land development, announced in the Budget last week, gives us confidence that the appropriate UK port infrastructure can be made available to support our production plans.”
The Siemens facility is expected to create 700 direct jobs and perhaps as many as 1,500 more in the supply chain. The plans come only a few days after GE announced a similar initiative in Britain, with investment of £100m, creating 2,000 jobs. Mitsubishi of Japan and Clipper Windpower have also announced schemes to make bigger and better blades that could bring down the cost of producing wind offshore.
Siemens is currently exploring a number of sites on the East Coast and in the North East and will make its decision about the exact location when the competition process for land development is complete. The company is working closely with the Regional Development Agencies and its partners to find the optimum site.
Big utilities such as E.ON and RWE have already won acreage under the Round Three (R3) licensing scheme to develop wind farms many miles off the coast of Britain. But some have warned that the economics remain fragile, given the deep water levels and other factors involved, unless development costs can be driven down.
Commenting on the announcement from Siemens Frost & Sullivan’s Wind Energy Industry Analyst Gouri Kumar said, “A combination of factors such as the UK government’s efforts to attract these companies to set up plants in the UK, the support to the offshore wind industry in the recent UK budget as well as the announcement of Round Three offshore wind project leasing, has sent the right signals to the market about how serious the UK is about developing the offshore wind market.
“The string of announcements from Clipper Windpower a few months ago to Siemens today is conveying to the market that the UK is finally converting rhetoric to some action and is one step ahead in creating a much-needed supply chain in the UK. There is no doubt that the UK is going to be the centre of offshore wind development and therefore needs to bring jobs and investment to the country in order to support that development. The commitment to the sector from the government and industry participants need to continue.”
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