Global giant Samsung Heavy Industries’ plan to invest up to £100m in Fife and create 500 jobs is being hailed as a massive shot in the arm for east central Scotland.
The Korean firm’s chief executive officer, Insik Roh, travelled to Scotland on Tuesday to confirm his company’s plan for its first European offshore wind energy base at Fife Energy Park in Methil.
SHI will initially use the site to test and demonstrate its new 7MW offshore wind turbine, but the main economic prize will only be realised if the trials are successful and Samsung gives the green light to a full-blown manufacturing facility.
However, that fact failed to dampen excitement over what could be an economic lifeline for Fife and provide high-quality jobs in the wider north east region for decades to come.
SHI has also signed a multi-million-pound deal with David Brown Gear Systems, a subsidiary of East Kilbride’s Clyde Blowers, to supply gearbox systems for its next-generation turbines.
That tie-up could also provide a separate jobs boost when Browns sets up its own Fife assembly plant to supply the new SHI facility. The whole project is subject to planning consents.
Mr Roh, who announced the move at the Scottish Offshore Wind and Supply Chain Conference in Aberdeen, said the investment comes at an ”exciting time” for the Scottish renewables industry.
He said: ”The testing of the new 7MW offshore wind turbine at the Fife Energy Park signifies a milestone in the development of Samsung’s new wind turbine generator system.
”We hope to contribute to the Scottish economy through successful testing and certification of our cutting edge offshore wind turbine and ultimately through establishment of our manufacturing facility here in Methil.”
It was confirmed that SHI’s commitment comes without up-front incentives, although the firm could qualify for grant aid as its rolls out it plans.
First Minister Alex Salmond said it was highly significant that SHI’s opted for Fife as the location for its first move into the European offshore wind market.
He said it was a huge endorsement of the country’s renewables vision the government’s own target for the green energy sector is to produce 100% equivalent of Scotland’s annual power demand by 2020 and he urged businesses to take advantage of the opportunities.
”I believe we will look back on this generation and see Scottish innovation at its finest and it is up to companies in the north east to grasp that opportunity,” Mr Salmond said.
Jim McColl, chairman and CEO of Clyde Blowers Capital, said: ”This is a huge vote of confidence by a major and well respected global business in the UK supply chain and ultimately a boost for employment and future job creation.”
Scottish Enterprise has estimated the green energy sector will have attracted up to £30bn in investment to Scotland by 2020 and created 40,000 new jobs. Around 28,000 of those jobs are expected to come in the offshore wind sector.
Scottish Enterprise chief executive Lena Wilson said 2012 is a critical year for the Scottish renewables industry as efforts continue to create a supply chain, cut costs, develop larger and more efficient turbines and update grid infrastructure.