The company behind a unique wind turbine facility in Billingham is recruiting 70 staff now - and says Teesside could be a key supplier for the UK’s offshore wind sector.
Offshore Structures (Britain) Ltd says there’s “huge, huge potential” for the company in the UK, including up to 400 Teesside jobs - and the first phase of its planned £30m investment is already underway.
German engineering firm EEW SPC and Danish steel contractor Bladt Industries took over TAG Energy’s Haverton Hill facility last November. The joint venture has now secured its first order for Dong Energy, in a major boost for UK manufacturing.
EEW’s sales director Michael Hof told the Gazette: “At the moment, this is the only facility of its kind in the UK.
“We see huge, huge potential in the UK for our future business - it’s a very important market for us - and the next step is to employ 300-400 people on Teesside.
“First we need around 70 people to get the equipment and facility up and running
“We are starting to invest on Teesside to improve productivity and equipment. To make large components, you have to invest - and some of the facilities are not state-of-the-art enough to be competitive in the market.
“The first step has already been agreed and arranged and will be installed in the summer. Additional money will then be invested to improve capacity.
“As a German company involved in making pipes for 40 years, we have a different understanding of how to proceed; there’s a need for investment to speed up quality and productivity to a certain level.
“There are many opportunities in the UK’s Round Three licensing for offshore wind.
“There is always some uncertainty and risk management in offshore wind.
“But we think this is an investment to be the supplier for the projects that are coming through.”
Successful candidates will be trained at the companies’ existing facilities, he added.
“We are now starting to recruit people and I am quite sure there will be people who previously worked for TAG.
"This is an on-going process at the moment.
“We need to recruit 60 to 80 people in the next two months and train them in Germany and Denmark, ready to start main production by July or August.
“Teesside was a facility that we could use immediately to produce components; we detect a lot of opportunities in the UK and Scotland but haven’t found any other existing facility that we could use.
"Teesside has rolling machines, welding equipment and the right facilities.
“We’ve been working with UK companies on oil and gas projects for many years, we want to bring the Teesside facility to the same level as Europe for the future.
“We hope to employ 350 people by the second phase of investment within the next two years.”
Stephen Catchpole, Managing Director of Tees Valley Unlimited, the Local Enterprise Partnership for Tees Valley, said: “The renewable energy sector is one in which Tees Valley has a strong presence, as shown by this significant order.
“One of TVU’s roles is to support Tees Valley inward investors and we have met Offshore Structures to discuss their ambitions. Since then we have helped them with their recruitment plans and to forge local contacts.
“Offshore wind is vital to the delivery of a balanced energy mix for the UK and it is important for the Tees Valley economy that it sustains and expands its capabilities and capacities in this field.”
The company will use its Teesside facility to manufacture a ‘high proportion’ of the transition pieces for 32 turbines, bound for the Burbo Bank Extension wind farm in Liverpool Bay.
TAG Energy became the first UK company to win a substantial monopile and transition piece project for a wind farm in British waters. It completed the 16 monopile load-out last summer and fell into administration weeks later.
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