One of the world’s largest offshore wind technology factories, based on Teesside, 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 its total investment into the site at Teesworks Freeport up to £900m.
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 £225m 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 £590m, 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.
Keir Starmer vows to ‘rip out bureaucracy that blocks investment’
“With the proactive support of UKEF, our project is progressing smoothly,” said Chris Sohn, chief executive of SeAH Wind UK.
“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.”
The ongoing construction has already created major contracts for the UK supply chain in manufacturing, construction and logistics, including a £100m contract for British Steel.