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 UK Export Finance (UKEF), SeAH Wind UK has now invested an additional £225m in offshore wind technology manufacturing in Teesside.
This brings their 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.
The role of monopiles in offshore wind technology
Wind monopiles are critical to the growth of the global renewable energy sector, as they are the foundation for most offshore wind technology.
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.”
Boosting UK supply chain manufacturing
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 £100m contract for British Steel.
Yoshi Ichikawa, Head of Structured Export Finance for Europe, Standard Chartered, commented: “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 offshore 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.”
