A funding package has been agreed to secure an estimated £350 m in inward investment for Scotland, based in the Highlands.
Sumitomo Electric UK Power Cables Ltd (SEUK), a subsidiary of Japanese company Sumitomo Electric Industries Ltd (SEI) is planning to establish major operations in the region, supplying high voltage cables to the growing offshore wind energy sector.
The Scottish Government, Highlands and Islands Enterprise (HIE) and Scottish Enterprise (SE) have approved up to £24.5m in public sector support to secure the project. This comprises £19.37 m in Scottish Government funding, £4.6 m from HIE and £0.53 m from SE.
The project includes plant and equipment investment, construction of a new purpose-built factory, and long-term land leasing and associated costs.
It 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 ten years, 265 of which will be in the Highlands and Islands including 156 well paid 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.
In January, The Highland Council approved a planning application from SEUK for a 57,500 sq m 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.
