Sif has taken a €328m final investment decision to build a new XXL monopile factory in Rotterdam, the Netherlands.
Construction is expected to start at the Maasvlakte 2 location in April next year and the facility will produce 200 foundations annually, upgrading the Dutch steel specialist’s total capacity to 500 kilotons a year
Operations are to begin in 2024 with Sif securing two launch deals, one with Shell and Eneco for 348 kilotones for undisclosed projects and a separate long-term framework agreement with Equinor.
“These launching orders and long-term capacity reservation framework agreements result in strong visibility of future projects and provide significant support to the long-term financial position of the company,” said Sif.
The facility will be financed with a combination of €100m in advanced factory payments from the launching customers, €50m preferred equity from Equinor, €50m common equity to be raised through a rights offering, €40m in operational leases and €81 million of term loans to be provided by Invest-NL and a consortium of commercial banks.
The remainder is being funded through cash and cash equivalents.
Sif chief Fred van Beers said: “By constructing the world’s largest monopile foundation manufacturing plant and by implementing next level integrated manufacturing technology with second to none process and quality controls, Sif will live up to its vision and take a pivotal step in securing its next phase of growth.
“As a result of this investment, we will strengthen our absolute global leadership position as monopile foundations solutions provider, enhance our innovative skills and create long term value for all our stakeholders with a clear growth path in an accelerating global offshore wind market.”