The vast SeAH factory at Teesworks - one of the world’s largest offshore wind technology factories - is to become even bigger after new government support.
Supported by backing from UK Export Finance, 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 £900million.
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.
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 and creating up to 750 jobs by 2027.
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.
“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: “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.”
SeAH Wind UK, a subsidiary of South Korean steel company SeAH Steel Holding, announced its decision to invest and broke ground at Teesworks 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.
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