First Minister Alex Salmond has announced a major inward investment project from Korean corporation Samsung Heavy Industries (SHI). The technology giant will establish its first European offshore wind project at Scotland’s leading renewable energy facility - Energy Park Fife in Mithil. The £100m venture is projected to generate over 500 new jobs.
"I am extremely pleased to welcome this inward investment by Samsung Heavy Industries, which further reinforces Scotland's place in the development of the next generation of offshore wind turbines,” said First Minister Alex Salmond, who made the announcement at the Scottish Offshore Wind and Supply Chain Conference in Aberdeen. “For Methil to be chosen as the test site for Samsung Heavy Industries’ new 7MW wind turbine is another example of this country’s ability to secure investment from global multinationals.”
Supporting Supply Chain and Facilities
The decision to develop its offshore wind technology at Fife Energy Park was accompanied by a multimillion-pound deal with David Brown Gear Systems, owned by Clyde Blowers, who will supply gearbox systems for SHI’s next-generation, offshore wind turbines. David Brown will facilitate Samsung’s transition into the European offshore wind industry by co-locating a gearbox assembly plant at Fife Energy Park in Methil to supply the SHI facility.
“This is a very exciting development for Clyde Blowers and David Brown,” said Jim McColl, Chairman and CEO of Clyde Blowers Capital. “Our growing collaboration with Samsung has led to the signing of this first major agreement. David Brown’s innovative and technologically advanced gearbox design will enable Samsung to deliver the next generation of offshore wind turbines and provide a lower cost energy solution to its customers.”
Samsung joins other companies such as Dell, Hewlett-Packard, Taqa, Avaloq, FMC Technologies, Mitsubishi Powers Systems, Aker, Ineos, PetroChina, Gamesa, BNY Mellon, and State Street. In the last two years, Fife has secured investment projects with Amazon, Morpol, RWE and Diageo, which have a combined investment value of nearly £400million, creating almost 2,000 new jobs. The investment is expected to develop Fife's already extensive supply chain, as well as positively impact on future investment and job creation.
“Clyde Blowers has also committed to jointly explore further supply chain opportunities in support of Samsung’s offshore wind business,” added McColl. “This is a huge vote of confidence by a major and well respected global business in the UK supply chain and ultimately a boost for employment and future job creation. I am confident that Samsung has the offshore market know-how and scale of resources to be a leading player in the offshore wind market, and I am delighted to be working with them to achieve this.”
Business Support Scotland
SHI will work closely with Fife Council and Scottish Enterprise, the economic development agency of Scotland, under a strategic agreement to advance the development in Mithil. Manufacturing facilities for the nacelle, gearbox and blades of the wind turbines will be constructed following the successful testing and demonstration of SHI’s technology, and subject to planning approval.
"We are pleased to be participating in the development of the Energy Park at Methil at such an exciting time for the Scottish renewable energy industry,” said CEO of Samsung Heavy Industries Mr. Insik Roh. “The testing of the new 7MW offshore wind turbine at the Fife Energy Park signifies a milestone in the development of Samsung's new wind turbine generator system. We hope to contribute to the Scottish economy through successful testing and certification of our cutting edge offshore wind turbine and ultimately through establishment of our manufacturing facility here in Methil."
Among other initiatives, Scottish government has set up the Carbon Trust, and Invest in Fife to support and promote the renewable energy sector, and develop Fife into a global renewables hub.
"This is an important milestone for Fife in its ambition to become the leading green council in Scotland,” said Cllr Peter Grant, Leader of Fife Council. “This is another great success for the Invest in Fife partnership which brings together Fife Council, Scottish Enterprise and Scottish Development International.”
Energy Park Fife – Renewable Energy Facility
Scottish Enterprise and Fife Council acquired the Energy Park site in 2006 and have invested £17 million into modern facilities to develop the renewable energy sector. “Under our new strategic agreement, we will work closely with SHI and look to further enhance the Energy Park to ensure it offers the very best facilities for offshore wind manufacturing and assembly,” said Lena Wilson, Scottish Enterprise Chief Executive.
Energy Park Fife incorporates Methil Docks, Methil Docks Business Park, a 54-ha manufacturing site, and the former Methil Power Station site. Opportunities in manufacturing, turbine demonstration, operations and maintenance, and supply chain activities are available - already being exploited by residents such as Burntisland Fabrications, the Renewables Innovation Centre, and the Hydrogen Office.
The site includes a 16-ha site with direct quayside access, and 4.7GW of offshore wind developments within a 60-ha radius. Regional Selective Assistance grants have been made available to encourage further investment in the sector, and investment plans are currently totalling £22million.
"We are delighted that Samsung Heavy Industries has indentified Scotland as the location for developing its offshore wind technology,” Wilson added. “Not only does this project further emphasise Scotland's leading position as a hub of expertise for test and demonstration of next generation offshore wind technology but it underlines the fact that we boast an excellent business environment for offshore wind with leading facilities such as the Energy Park in Fife.”
For more information about doing business in Fife, please see their locations4business profile.
