The company behind plans to build the world's biggest wind tech facility in the North East has secured a £367m funding package.
South Korean manufacturer SeAH Steel Holdings announced plans to build an 800m monopile manufacturing plant in Redcar, Teesside, last summer. Since then, the steel frame for the building has started to take shape at South Bank, where the £500m SeAH Wind Ƶ facility will become the world’s largest monopile facility once it is complete.
Now Ƶ Export Finance (ƵEF) and South Korea’s export credit agency Korea Trade Insurance Corporation (K-Sure) have announced they have secured support for South Korean manufacturer SeAH Steel Holdings, to ensure construction of the factory, which will be also be a Ƶ industry first. The finance package secures inward investment for the factory, which is expected to create 750 jobs on Teesside within the next three years and support more than 1,500 jobs in the wider supply chain.
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ƵEF and K-Sure said the first ever ‘Invest-to-Export’ loan guarantee had been issued, to secure overseas investment in Ƶ industry, ensuring that SeAH Wind Ƶ can fund the construction project, with £367m in financing from Standard Chartered Bank and HSBC Ƶ. Each year, the 40m high factory will produce up to 200 monopiles - which form the foundations of offshore wind turbines – making it critical for the growth of the global renewable energy sector.
Lord Offord, Minister for Exports, said: “This landmark deal brings substantial overseas investment to Teesside and consolidates the Ƶ’s place as a world leader in offshore wind – and renewable energy – expertise and exporting. Through Ƶ Export Finance, this government is bringing in new investment for the Ƶ’s world-class manufacturing sector and securing the long-term prosperity of the United Kingdom.”
Yoshi Ichikawa, head of structured export finance for Europe at Standard Chartered, said: “With our long-standing partnership with ƵEF and K-Sure and the Bank’s commitment to accelerating the transition to net zero, we are proud to structure this financing for our important client SeAH Group and contribute to the Ƶ supply chain in the wind sector.”
Philip Lewis, global co-head of export finance for HSBC, said: “We are delighted to have supported SeAH Wind with the combined ƵEF and K-Sure backed financing for the Ƶ’s first offshore wind monopile manufacturing facility. This plays an important role in supplying the offshore wind industry and helps meet the rising demand for renewable energy.”
Chris Sohn, SeAH Wind, said: “We are delighted to invest in the Ƶ. This project is significant in that it contributes not only to the growth of Ƶ’s local economy but also global de-carbonization efforts. Our aim is to become a global leader in the offshore wind supply chain. We would like to express our gratitude to ƵEF and K-Sure for their support.”
SeAH Wind Ƶ, a subsidiary of South Korean steel company SeAH Steel Holding, announced its decision to invest and broke ground at Teesworks Freeport last summer.
The £367m financing comprises £257m supported by ƵEF and £110m supported by K-Sure. The ongoing construction has already sealed a deal worth over £100m between SeAH, British Steel and Severfield, which will create opportunities for the Ƶ supply chain within manufacturing, construction and logistics sectors.
ƵEF’s support was provided under the Export Development Guarantee (EDG) product, which supports Ƶ companies looking to bolster their exporting capability.
