THE global company behind a turbine blades project that will bring more than 2,000 jobs to Teesside has confirmed there ARE problems with talks to secure the future of the deal.
A spokesperson for GE Renewable Energy exclusively told The Northern Echo this morning: “GE Renewable Energy’s LM Wind Power business is currently facing delays in the finalisation of the leasing agreement and design to open its new blade manufacturing plant in Teesside, England.
"GE Renewable Energy continues to work actively with local and national stakeholders, and its customers on this specific project.”
The confirmation is a significant setback for Tees Valley Mayor Ben Houchen, who last night slammed "the usual suspects" over the claims and told us: "As far as we are aware, the project is progressing at pace."
The plant has been key evidence used by the Mayor's team to show that the Freeport, Teesworks, the whole future blueprint for the region was working and was attracting global attention and investment.
The facility is one of the first major schemes to come to the Teesworks site and up to 2,250 jobs will be created to support the construction of the factory. When completed the huge factory will create up to 750 direct highly skilled jobs and close to 1,500 indirect jobs to support its supply chain
But Renewable Energy News had reported that GE was getting cold feet over its lease after a pipeline of future work was put at risk by rival bids.
Read more: New UK Infrastructure Bank to invest £107million in Teesworks’ South Bank Quay
But Houchen had hit back, telling The Northern Echo: “The Labour Party thought Christmas had come early with bad news for Teesside. Unfortunately, the usual suspects were out in force spreading rumours around the progress of the GE facility on Teesside.
"I can confirm that GE are completely committed to coming to Teesside and we continue to work with them to finalise legal agreements and factory building specifications. Preparation of the site is almost ready and construction of the factory will start early next year.
“GE has won contracts to build offshore wind blades on the basis that they make them in Teesside, as has also been confirmed by Equinor who gave GE the contract for the blades.
"As far as we are aware, the project is progressing at pace and as we expected having had meetings with GE as recently as this week.”
The huge 76,200sq m facility was in the South Bank zone of the vast Teesworks site, with construction underway for a 2023 completion.
LM Wind Power, part of GE renewable energy, will operate the facility, which will be dedicated to the production of its 107-metre-long offshore wind turbine blades. These are a key component of GE’s Haliade-X, the most powerful offshore wind turbine and used at Dogger Bank, the world’s largest wind farm, located just 80 miles off the North East coast.
Read more: Green light for 2,000-job wind turbines plant on Teesside
When the UK Infrastructure Bank backed the plans with more than £100m for a new quay, Chancellor of the Exchequer Rishi Sunak said: “This is a vote of confidence in the Tees Valley economy and our new freeports that will help turbocharge Britain’s post-Brexit growth.”
Redcar MP Jacob Young said the Bank's support was "part of the reason we were able to secure GE’s new wind turbine manufacturing on Tees.
“These decisions don’t happen by accident," he added.
So any idea that it could be at risk from a delay would be the biggest challenge Houchen has faced and a huge test for other investors looking at the region as the next renewables capital.
The story first surfaced in Renewable Energy News, which claimed that GE was putting its plans 'on ice' because it was concerned about future business prospects after stiff competition from Siemens swooped in to get key windfarm contracts. GE would have wanted assurances that there was enough work left to keep its new plant busy.
Keep up to date with all the latest news on our website, or follow us on Facebook, Twitter and Instagram.
You can also follow our dedicated Teesside Facebook page for all the latest in the area by clicking here.
For all the top news updates from right across the region straight to your inbox, sign up to our newsletter here.
Have you got a story for us? Contact our newsdesk on newsdesk@nne.co.uk or contact 01325 505054
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel