Sumitomo Electric secures £350 million investment

In May 2023, SEI announced plans to develop a power cable factory in the Scottish Highlands, which would supply high voltage cables to the growing offshore wind energy sector in the area.

Now the Scottish Government, along with Highlands and Islands Enterprise (HIE) and Scottish Enterprise, have approved up to £24.5 million in public sector support to secure the project. This comprises £19.37 million in Scottish Government funding, £4.6 million from HIE, and £530 000 from Scottish Enterprise.

With offshore wind developments like ScotWind increasing in Scotland and the UK, the market demand for high voltage cables has rapidly increased. The market reports there are currently extended lead times for cable supply which, in turn, slow the development of offshore wind projects.

SEUK’s new factory will help reduce those lead times while also strengthening energy security.

The £25.4 million in funding will support the project as it begins to invest in its plant and equipment, construction of a new purpose-built factory, and long-term land leasing and associated costs.

This project will stimulate significant economic activity across industry supply chains at regional, Scottish, and UK levels. This includes the creation of around 330 jobs in Scotland over the next 10 years, 265 of which will be in the Highlands and Islands, including 156 well-paid manufacturing jobs on site.

On 17 January, the Highland Council approved a planning application from SEUK for a 57 500 m² factory on a 15-ha. site close to the Port of Nigg yard in Easter Ross. Offices, a warehouse, and external laydown areas are included in the proposals.

The site is located within the recently designated Inverness and Cromarty Firth Green Freeport boundary, which was a key factor in the company’s decision to invest in the Highlands.

“This is one of the biggest ever inward investment projects for the Highlands and Islands, and is a fantastic opportunity for the region and for the country as a whole. We expect to see hundreds of high-quality employment opportunities created during the construction phase and beyond, including opportunities throughout the supply chain,” said Stuart Black, Highlands and Islands Enterprise Chief Executive.

Black added: “The new factory will play an important part in our transition to a net-zero economy, enabling more enterprises and communities to capitalise on opportunities around low carbon and adding to the region’s growing reputation as an excellent location for business and inward investment.

“The Inverness and Cromarty Firth Green Freeport has played a significant part in attracting Sumitomo to the region. It’s been a great example of the strength of the local partnership and what this can achieve. I’m delighted we have got to this stage and look forward to continuing to work with Sumitomo and our partners to establish the new factory.”

Adrian Gillespie, Chief Executive at Scottish Enterprise, concluded: “Sumitomo’s decision to locate in Scotland is good news, both for the Highlands region and because it adds another critical capability to Scotland’s supply chain offering in offshore wind.

“Scottish Enterprise’s new approach to working with companies includes our energy transition mission, which aims to accelerate technology innovation, supply chain capability and investment in manufacturing and key infrastructure. Sumitomo is a great example of this process in action and, alongside our Team Scotland partners, we’ll continue to work closely with the company as it expands its operations here.”

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Read the article online at: https://www.energyglobal.com/wind/26022024/sumitomo-electric-secures-350-million-investment/