Manufacturing giant Siemens is to invest £160million in wind turbine production and installation facilities in the UK, creating 1,000 new jobs.
The German firm had been working on plans to invest £80million, which would have led to 700 jobs, but it has decided to revise its plans, giving a boost to the offshore wind industry.
The work will be spread across two sites comprising the previously announced Green Port Hull project construction, assembly and service facility and a new rotor blade manufacturing facility in nearby Paull, in East Riding.
Siemens will invest £160 million across the two locations and its port partner Associated British Ports (ABP) is spending a further £150 million in the Green Port Hull development.
The combined investments of £310 million will create up to 1,000 jobs directly, with additional jobs during construction and indirectly in the supply chain.
Siemens said it will be the first manufacturing plant of its kind for the firm’s next-generation blade technology designed for wind turbines.
Each rotor blade is 75 metres long and when rotating covers an area the size of two-and-a-half football pitches.
Michael Suess, member of the managing board of Siemens and chief executive of its energy sector, said: “Our decision to construct a production facility for offshore wind turbines in England is part of our global strategy. We invest in markets with reliable conditions that can ensure that factories can work to capacity.
“The British energy policy creates a favourable framework for the expansion of offshore wind energy. In particular, it recognises the potential of offshore wind energy within the overall portfolio of energy production.
“The offshore wind market in Great Britain has high growth rates, with an even greater potential for the future. Wind power capacity has doubled here within two years, to roughly 10 gigawatts. By 2020, a capacity of 14 gigawatts is to be installed at sea alone to combine the country’s environmental objectives with secure power supply.
“Projects for just over 40 gigawatts are currently in the long-term planning.”
Prime Minister David Cameron said: “This is a massive vote of confidence in our long-term economic plan.
“This investment is going to create lots of new jobs and opportunities, meaning more financial security and peace of mind for families and a more resilient economy for our country.”
Energy Secretary Ed Davey said: “This deal is excellent news for the people of Hull and the Humber, the UK, the wind industry, and our energy security. We are attracting investment by backing enterprise with better infrastructure and lower taxes.
“As well as helping to keep the lights on and putting more than 1,000 people in work, this deal means we will help to keep consumer bills down as we invest in home-grown green energy and reduce our reliance on foreign imports.
“This deal shows our strategy for offshore wind is working; bringing investment, green jobs and growth, and helping keep Britain the number one country in the world for offshore wind.
“Roland Aurich, chief executive of Siemens, said: “Being able to further increase our presence in the UK with this significant commitment is great for Siemens, for the UK economy and for future generations, who will benefit from more secure and sustainable, low carbon energy.“
Siemens employs around 13,700 workers in the UK, including 4,000 in the energy sector.
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