Further funding pumped into Teesside monopile factory
Supported by backing from UK Export Finance, SeAH Wind UK has made an additional £225m investment into wind technology manufacturing at the Teesworks site.
With completion on the factory build continuing, the arrangement brings total investment into the monopile manufacturing facility to £900m.
The partners said that the new investment became 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 finance.
Wind monopiles act as the foundation for most offshore wind turbines and are critical to the growth of the global renewable energy sector.
The hope is that upon completion of the factory, SeAH Wind UK will export to US and European markets.
The new financing package means that the factory will be able to produce even bigger monopiles and a wider range of products. It is hoped that the project will create 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.”
One goal is 750 local jobs by 2027. Credit: via Eulogy
Tim Reid, chief executive of UKEF, added: “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.”
SeAH Wind UK, a subsidiary of South Korean steel company SeAH Steel Holding, broke ground at Teesworks Freeport in 2022.
The partners said that the project 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 at Standard Chartered, said: “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 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.”
UKEF’s support was provided under the Export Development Guarantee product, which is available for overseas companies investing in new UK exporting opportunities. The EDG product is also being put to work in Turkish company Eren’s £1bn paper mill in Shotton, North Wales.
