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UKEF and K-Sure have secured support worth £367 million for South Korean manufacturer SeAH Steel Holding’s construction of a wind tech factory near Redcar, in the Tees Valley.
The financing will secure inward investment which will create 750 jobs in Teesside and ensures construction of the world’s largest wind monopile factory in Redcar.
Issuing its first ever ‘Invest-to-Export’ loan guarantee to secure overseas investment in British industry, UKEF together with K-Sure has ensured that SeAH Wind UK can fund the construction project – worth almost £500 million – with £367 million in financing from Standard Chartered Bank and HSBC UK. The facility was also eligible for longer and more flexible repayment terms as a ‘Clean-Growth’ facility.
Wind monopiles act as the foundation for most offshore wind turbines and are critical to the growth of the global renewable energy sector.
Lord Offord, Minister for Exports, said: “This landmark deal brings substantial overseas investment to Teesside and consolidates the UK’s place as a world leader in offshore wind – and renewable energy – expertise and exporting.
Through UK Export Finance, this government is bringing in new investment for the UK’s world-class manufacturing sector and securing the long-term prosperity of the United Kingdom.”
Yoshi Ichikawa, Head of Structured Export Finance for Europe, Standard Chartered, said: “With our long-standing partnership with UKEF and K-Sure and the Bank’s commitment to accelerating the transition to net zero, we are proud to structure this financing for our important client SeAH Group and contribute to the UK supply chain in the wind sector.”
Philip Lewis, Global Co-Head of Export Finance for HSBC, said: “We are delighted to have supported SeAH Wind with the combined UKEF and K-Sure backed financing for the UK’s first offshore wind monopile manufacturing facility. This plays an important role in supplying the offshore wind industry and helps meet the rising demand for renewable energy.”
Chris Sohn, SeAH Wind, said: “We are delighted to invest in the UK. This project is significant in that it contributes not only to the growth of UK’s local economy but also global de-carbonization efforts. Our aim is to become a global leader in the offshore wind supply chain. We would like to express our gratitude to UKEF and K-Sure for their support.”
SeAH Wind UK, a subsidiary of South Korean steel company SeAH Steel Holding, announced its decision to invest and broke ground at Teesworks Freeport last summer.
The confirmed support which is now being announced will secure the project’s future. The £367 million financing comprises £257 million supported by UKEF and £110 million supported by K-Sure.
This deal creates British jobs and cements Teesside’s place as a centre of manufacturing expertise for renewable energy. Upon completion of the factory, SeAH Wind UK will export monopiles to US and European markets, creating up to 750 jobs by 2027 and supporting more than 1,500 jobs in the wider supply chain.
The ongoing construction has already secured a deal worth over £100 million for British Steel and will create opportunities for the UK supply chain in sectors like manufacturing, construction and logistics.
UKEF’s support was provided under the Export Development Guarantee (EDG) product, which supports UK companies looking to bolster their exporting capability. Today’s news highlights the availability of UKEF support for both UK and overseas companies seeking to invest in new export opportunities, with financing available based on the applicant’s potential for winning overseas orders.