Sumitomo Electric UK Power Cables (SEUK), a subsidiary of Japanese company Sumitomo Electric Industries, has secured £24m in funding for its planned cable factory at the Port of Nigg (pictured) in Scotland.
The Scottish government, Highlands and Islands Enterprise (HIE) and Scottish Enterprise (SE) approved up to £24.5m in public sector support to secure the project which they estimate will secure an estimated £350m in inward investment for Scotland, based in the Highlands. The funding comprises £19.37m from Holyrood, £4.6m from HIE and £0.53m from SE.
The project includes plant and equipment investment, construction of a new purpose-built factory, and long-term land leasing and associated costs.
HIE said the scheme will stimulate significant economic activity across industry supply chains at regional, Scotland and UK levels. This includes creating around 330 jobs in Scotland over the next 10 years, 265 of which will be in the Highlands and Islands including 156 manufacturing jobs on site.
Market demand for high voltage cables has increased in the wake of ScotWind and other developments in the UK sector of the North Sea as well as off the EU coast and Baltic. This new factory will help reduce lead times for the supply of sub-sea cables and strengthen energy security HIE added.
On 17 January, The Highland Council approved a planning application from SEUK for a 57,500-square metre factory on a 15-hectare site close to the Port of Nigg yard in Easter Ross. Offices, a warehouse and external laydown areas are included in the proposals.
The recently designated Inverness and Cromarty Firth Green Freeport was a key factor in the company’s decision to invest in the Highlands said HIE.
Speaking ahead of a speech to business leaders today (Friday) in Edinburgh, Wellbeing Economy, Net Zero and Energy Secretary Màiri McAllan, said: “This major investment in the Highlands will support the delivery of the First Minister’s flagship commitment of up to £500m over five years to anchor our offshore wind supply chain and create good, green jobs.
“The Nigg project is a significant milestone in bringing the infrastructure and manufacturing facilities critical to the growth of our world-leading offshore wind sector – and an important step towards our vision for Scotland’s net zero economy.”
HIE chief executive Stuart Black added: “This is one of the biggest ever inward investment projects for the Highlands and Islands and is a fantastic opportunity for the region, and for the country as a whole. We expect to see hundreds of high-quality employment opportunities created during the construction phase and beyond, including opportunities throughout the supply chain.
“The Inverness and Cromarty Firth Green Freeport has played a significant part in attracting Sumitomo to the region. It’s been a great example of the strength of the local partnership and what this can achieve. I’m delighted we have got to this stage and look forward to continuing to work with Sumitomo and our partners to establish the new factory.”
SE’s international arm, Scottish Development International (SDI), has been working with Sumitomo over a number of years to showcase Scotland’s leadership in renewable energy.
SE chief executive Adrian Gillespie said: “Sumitomo’s decision to locate in Scotland is good news, both for the Highland region and because it adds another critical capability to Scotland’s supply chain offering in offshore wind.
“Scottish Enterprise’s new approach to working with companies includes our energy transition mission, which aims to accelerate technology innovation, supply chain capability and investment in manufacturing and key infrastructure.”
SEUK chairman Yasuyuki Shibata said: “Sumitomo Electric Industries is a forerunner in the global offshore power cable manufacturing market.
“Establishment of a Sumitomo cable making facility, producing state of the art cable, in the UK, specifically Scotland and the Highlands, is testament to the support received from all stakeholders involved in the project.
“We are particularly thankful for the backing received from the UK and Scottish governments, Highlands and Islands Enterprise and Scottish Development International in this venture – Sumitomo’s first cable manufacturing facility located in the western hemisphere.
“We look forward to actively contributing to the local economy, through direct and indirect job creation, and to becoming an integral and active member of the Highland community. Product from our factory will not only be of the highest quality but will form a vital contribution to the supply chain, as Scotland and the UK deliver their net zero energy ambitions.”