(PRWEB) September 30, 2010
Following the green light for the UK’s first major offshore wind manufacturing facility on Teesside last week, Challenge Capital, who led the deal, is calling for developers to back the UK offshore wind supply chain.
Says Sean McLaughlin a partner at Challenge Capital LLP who led the transaction “TAG and their new funders have put up the cash and are building the facility. It is now the developers turn to provide backing with orders and help establish an efficient and robust supply chain. Otherwise the Renewable Premium will continue to be spent abroad.
It’s two years since the UK became the world leader in installed offshore wind capacity and only last week Chris Huhne opened the world’s largest offshore wind farm off the Kent coast, yet almost nothing for this development was manufactured in the UK. On the other hand Denmark Belgium and Holland, who currently host a large proportion of the supply chain, started their investment in offshore wind as far back as the early 90’s.”
Developers need the supply chain to be established if they are to invest in Offshore Wind but now that companies such as TAG are putting their money up it is essential that these major electricity generators allow TAG and others to bid alongside the existing players.
Sean McLaughlin continues “TAG received financial support from the last government and it is now Chris Huhne’s turn to encourage developers to support UK PLC. He has made his views on nuclear power clear, now he has the chance to chat to EDF about an area he says he wants them and other electricity generators to focus on - they are about to place orders for their first offshore wind farm only a few miles down the river from TAG. ”
Notes to Editors
The £20 million facility will ensure Teesside will beat other UK regions to become the first area to host a major renewable energy component manufacturing plant.
The production facility will be located at Haverton Hill, Billingham and will be a major boost for an area that was named as the most vulnerable to be affected by a cut in public spending in recent research. The investment has the potential to create up to 400 jobs.
Based on the North Bank of the River Tees on Teesside, TAG will develop an automated tubular production facility for the rolling and welding of large diameter tubulars and the construction of subsea foundations for offshore windmills.
The initial phase of development will create 100 new jobs for a core workforce and a further 300 jobs to service orders.
About Challenge Capital LLP
Challenge Capital is an advisory business providing fundraising, M&A and strategic advice and management to businesses undergoing significant change and growth. Sean McLaughlin specialises in the offshore wind industry.
About TAG Energy Solutions
TAG was established in 2006 and has spent £4m developing the yard at Haverton Hill, Billingham with a full refurbishment of the 5,915 sq metre workshop, external work areas, loadout areas and offices. State of the art IT, security and communication systems have been installed.