A landmark deal worth well over £100million has been struck to use British Steel on one the world’s biggest offshore wind plants being built at Teesworks.
Steel work is being erected as major progress continues on the £450million SeAH Wind monopile manufacturing facility at South Bank on the former steelkworks site.
The 800-metre-long building will be the world’s biggest monopile facility when complete and is the first of its kind in the UK.
The 40m high factory will annually produce up to 200 monopiles – which form the foundations of offshore wind turbines.
The new deal between SeAH, British Steel and Severfield has now been signed which will see steel from British Steel’s Teesside Beam Mill at Lackenby, near Redcar, used in the giant development.
Northallerton-based Severfield will fabricate the steel ahead of it being installed on the 90-acre site.
The hope is that the announcement will herald the start of an ongoing commitment from Teesworks tenants who follow to also use British Steel.
Almost 400 people are now working on the site. Many more jobs for the plant will come online towards the end of 2023 and early in 2024 – with 750 direct jobs in total and 1,500 forecast to come through the supply chain.
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British Steel will supply more than 30,000 of tonnes of steel under the agreement. Recycled steel from former steelworks sites will also be used in the new construction to help create the new facilities from the ashes of the old.
Tees Valley Mayor Ben Houchen said: “Our steel built the world from the Sydney Harbour Bridge to Canary Wharf. Now from our proud past we’re building a bright future in the industries of tomorrow – and we’re making use of what we do best.
“This once again shows how SeAH and the firms we’re bringing to the Teesworks site are fully behind having a local workforce at the heart of making Teesside the green energy capital of the UK.
“It’s essential Teesworks creates jobs, opportunities and prosperity right here in Teesside, Darlington and Hartlepool. Having British Steel at the heart of this game-changing project really is a massive boost, as it means we can make use of our talent and expertise in steelmaking and secure jobs for the future at home.”
South Korean manufacturer SeAH’s factory will comprise 1.13million sq ft of high-quality factory space to produce monopiles up to 120 metres in length, 15.5 metres in diameter and weighing 3,000 tonnes.
The monopiles will be transported directly from the factory to Teesworks’ new South Bank Quay facility before heading to the North Sea for installation using specialised pile driving equipment.
Chris Musgrave OBE, Chairman of Teesworks, said: “It’s fantastic to have SeAH Wind at Teesworks, and to have British Steel as supplier and Severfield as the metal fabricator are massive boosts to our wider steel industry.
“This will further secure jobs at Lackenby and shows Teesworks, and firms like SeAH, are committed to ensuring local labour is used so we make the best use of what we have nearby.”
Ben Cunliffe, British Steel’s Commercial Director for Construction, said: “We’re extremely proud that our steel manufactured at Teesside Beam Mill is going into this hugely impressive development by SeAH Wind, and we are delighted to play our part in the exciting regeneration happening on our doorstep in Teesside.
“While we have a rich heritage having supplied many iconic buildings across the globe, we’re focused on the future and delivering the high-quality products our customers require.
“Teesside and British Steel remain at the forefront of UK steelmaking, and we look forward to working with our partners both on this huge project for SeAH Wind and beyond in the continued levelling up and transformation of the area.”
Chris Sohn, CEO of SeAH Wind, said: This significant step re-confirms SeAH’s commitment to use not only local companies in the Teesside area, but also work with the best companies in the UK to help build our factory to the highest standards.
Bringing large steel manufacturing capability to Teesside, such as our XXL monopile factory after the closure of the Redcar blast furnace in 2015, shows that the area is the epicentre once again of the next industrial “green” revolution.
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K2 Construction Management is the company with responsibility to deliver the SeAH Wind project.
Cllr Alec Brown, Leader of Redcar and Cleveland Borough Council, said: “There is a huge affinity with British Steel for many families in Redcar and Cleveland and it is excellent news that the company will contribute to a major development on the Teesworks site.
“The successful development of the site will be transformational for our borough and we look forward to SeAH Wind employing hundreds of people and providing work for many more in the construction sector and supply chain.”
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