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UK Export Finance and Korea Trade Insurance Corporation have guaranteed new financing for a major South Korean investment into Teesside.
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This has unlocked new £225 million in financing from Standard Chartered Bank and HSBC UK for SeAH Steel Holding's construction of a wind tech factory near Redcar.
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The financing supports an additional investment which will help the mega-factory to produce wider range of components for the offshore wind sector and meet latest industry demands.
Based in Teesside, one of the world's largest offshore wind technology factories will become even bigger after new government support for a South Korean investor.
Supported by backing from UK Export Finance (UKEF), SeAH Wind UK has now made an additional £225 million investment into wind technology manufacturing in Teesside. This brings their total investment into the site at Teesworks Freeport up to £900 million.
This was made possible after SeAH Steel Holding received financial guarantees from UKEF and Korea Trade Insurance Corporation (K-Sure) - the UK and South Korean export credit agencies - meaning that it could access £225 million in new financing for its ongoing factory build.
UKEF and K-Sure first supported the project in 2023. New support brings their joint backing for this project up to £590 million, with Standard Chartered Bank and HSBC UK providing the finance.
Wind monopiles act as the foundation for most offshore wind turbines and are critical to the growth of the global renewable energy sector. Upon completion of the factory, SeAH Wind UK will export to US and European markets.
New financing means that the factory will be able to produce even bigger monopiles and a wider range of products to meet industry demands, supporting the UK's place in the global offshore wind supply chain.
The project will create up to 750 jobs by 2027 - a milestone in the development of a thriving offshore wind and renewables industry in North-East England.
Chris Sohn, Chief Executive of SeAH Wind UK, said:
With the proactive support of UKEF, our project is progressing smoothly. As we approach the completion of the factory construction, we are committed to ensuring its successful finalisation. We aim to become the first monopile manufacturing company in the UK and make a significant contribution to the UK economy.
Tim Reid, CEO of UK Export Finance, said:
This investment shows that there is international confidence in the UK economy and its ability to support the industries of tomorrow.
UK Export Finance is helping to secure overseas investment in Teesside and around the UK through its financing offer. By working with HSBC UK, Standard Chartered and K-Sure to support investment into this project, the government is bolstering North-East England's position as a leader in renewable energy expertise.
Ian Stuart, CEO of HSBC UK, said:
We are delighted to provide our continuing support to SeAH Group for its new offshore wind monopile manufacturing factory in Teesside, North-East England. Through its expanded manufacturing capabilities, the factory will significantly contribute to the needs of the offshore wind industry and play an essential role in addressing the growing demand for renewable energy. This project underscores the importance of export finance in helping our clients grow their operations globally and facilitating their journey to net zero.
Yoshi Ichikawa, Head of Structured Export Finance for Europe, Standard Chartered, said:
We are proud to build on our previous financing provided in November 2023, to support SeAH Group's additional investment and enhancement of the UK supply chain in the wind sector. It is an example of the important role we play in helping our clients and sectors to make credible progress on their net zero ambitions, while supporting economic development across our markets.
SeAH Wind UK, a subsidiary of South Korean steel company SeAH Steel Holding, announced its decision to invest and broke ground at Teesworks Freeport in 2022.
The ongoing construction has already created major contracts for the UK supply chain in manufacturing, construction and logistics, including a £100 million contract for British Steel.
UKEF's support was provided under the Export Development Guarantee (EDG) product, which is available for overseas companies investing in new UK exporting opportunities and has also secured a major investment into Welsh paper manufacturing at Shotton Mill, Deeside.
Notes
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UKEF's Export Development Guarantee (EDG) helps companies who export from or plan to export from the UK access high-value loan facilities for general working capital or capital expenditure purposes.
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Of the new financing, UKEF guaranteed over £157 million whilst K-Sure guaranteed over £67 million.
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This follows previous financing worth £367 million in 2023, of which £257 million was guaranteed by UKEF and £110 million by K-Sure.
