Japan’s Sumitomo has committed to building a £350m cable factory in the Highlands after agreeing a funding package from the Scottish Government.
Funding of £24.5m has been approved for the factory, expected to create around 330 jobs over the next ten years, 265 of which will be in the Highlands. There will be 156 “well paid manufacturing jobs on site”.
A report from the Subsidy Advice Unit published last year revealed that £24.5m was the minimum figure Sumitomo would accept to build the facility, and represents less than 10% of its capital commitments.
Plans for the 57,000 square-metre factory at Pitcalzean, adjacent to the Port of Nigg in the Cromarty Firth, were approved on January 17.
The facility would service market demand for high voltage cables for huge offshore wind projects off Scotland’s shores following the ScotWind leasing round in 2022, as well as other UK developments and those off the EU coast and in the Baltic.
Being built by Sumitomo Electric, a subsidiary of the conglomerate, the project is expected to reduce lead times for the supply of those cables and strengthen energy security.
© Supplied by SumitomoPlans were first agreed last year when former energy secretary Neil Gray met with Sumitomo Electric in Osaka.
The funding package has been agreed by Scottish Government, supplying £19.37m, Highlands and Islands Enterprise (£4.6m) and Scottish Enterprise (£530,000).
Energy Secretary Mairi McAllan said: “This major investment in the Highlands will support the delivery of the First Minister’s flagship commitment of up to £500 million over five years to anchor our offshore wind supply chain and create good, green jobs.
“The Nigg project is a significant milestone in bringing the infrastructure and manufacturing facilities critical to the growth of our world-leading offshore wind sector – and an important step towards our vision for Scotland’s net zero economy.
“My predecessor Neil Gray visited Sumitomo last year during a trade visit to Japan, so I am delighted that we have now reached this significant milestone. It comes as a further three major projects progress through the Strategic Investment Model with the potential to boost Scotland’s offshore wind supply chain.
© Supplied by DCT“Supported by our public and private sector partners, the Scottish Government’s wider five-year investment will help to create a highly innovative and competitive economy, providing thousands of highly-skilled jobs.”
Yasuyuki Shibata, chairman of Sumitomo Electric U.K. Power Cables Ltd, said: “Sumitomo Electric Industries is a forerunner in the global offshore power cable manufacturing market.
“Establishment of a Sumitomo cable making facility, producing state of the art cable, in the United Kingdom, specifically Scotland and the Highlands, is testament to the support received from all stakeholders involved in the project.
“We are particularly thankful for the backing received from the UK and Scottish governments, Highlands and Islands Enterprise and Scottish Development International in this venture – Sumitomo’s first cable manufacturing facility located in the western hemisphere.
“We look forward to actively contributing to the local economy, through direct and indirect job creation, and to becoming an integral and active member of the Highland community. Product from our factory will not only be of the highest quality but will form a vital contribution to the supply chain, as Scotland and the UK deliver their net zero energy ambitions.”
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