SPECULATION was mounting last night that a Tees Valley wind turbine foundation plant, with the potential to create 400 jobs, is set to secure a major contract with energy giant EDF.

The Northern Echo understands that the £20m plant run by TAG Energy Solutions is in advanced talks with EDF over a contract relating to the Teesside Offshore Windfarm.

The building of the 27-turbine windfarm, 1.5km off the coast at Redcar, is being managed by EDF Energy Renewables from its Wilton office on Teesside.

Winning the contract would be a major coup for the TAG facility at Haverton Hill, Billingham, which has so far secured smaller scale orders.

The plant, which was officially opened by Energy Secretary Chris Huhne last month, presently has about 45 staff, but could eventually employ up to 400 should orders meet expectations.

Last night a spokesman for TAG said: "Speculation is premature. We have not finalised an agreement but we hope to be able to make an announcement soon."

TAG, a key part of a growing North-East hub of offshore wind expertise, is one of the 19 founder members of the new Energi Coast cluster group which was launched last week and it is understood that other local firms are also in-line for work on the EDF project.

The TAG plant has the capacity to produce 100,000 tonnes of tubulars each year and the potential to run 24-hours-a-day, seven days-a week, rolling and welding large diameter tubes used in the construction of offshore wind turbine jackets and foundations.

Last month TAG announced that its new plant had secured its first order, from the Middlesbrough-based offshore services firm Wilton Engineering Group to produce a test pile for its oil industry work.

Wilton Engineering is making clamps to be used on tubes supporting an offshore installation at Dong Energy's Siri oilfield in the Danish North Sea.

The test pile that Tag will produce will be used by the firm to judge the clamp's effectiveness.

The firm is a key part of a growing North-East hub of offshore wind expertise, with Energi Coast formed to promote the region as a natural home for firms in the sector and for members to join forces to secure work.

As well as TAG, whose chief executive Alex Dawson is chairman of Energi Coast, its members include CTC Marine Projects in Darlington, which installs deepwater cables, JDR Cables in Hartlepool, a world leader in producing turbine cables, underwater robot specialist SMD, which last year bought Hallin Robotics, in Malton, North Yorkshire, and Tata Steel, which this month announced a £2m investment in its Hartlepool tubemills to enable them to provide components to anchor wind turbines to the seabed.