£24.5M Scottish public money used to secure £350M Highlands cable factory

A new purpose-built factory manufacturing high voltage cables will be built at a 15ha site near the Port of Nigg on Easter Ross in Scotland.Sumitomo Electric UK Power Cables Ltd (SEUK), a subsidiary of Japanese company Sumitomo Electric Industries Ltd (SEI) is behind the facility and hopes to supply cables to the offshore wind energy sector.The announcement from Highlands and Islands Enterprise follows planning approval for the site by the Highlands Council on 17 January 2024, and an agreement to provide £24.5M of taxpayers cash to secure wider private investment.The approved planning application was for a 57,500 square meter factory on a 15Ha site including offices, a warehouse and several laydown areas.The public sector funding comprised of £19.37M from the Scottish Government, £4.6M from HIE (Highlands and Islands Enterprise), and £0.53M from SE (Scottish Enterprise).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 £19.37M in Scottish Government funding, £4.6M from HIE and £0.53M from SE.A statement from HIE said the facility would “stimulate significant economic activity across industry supply chains at regional, Scotland and UK levels” and said it expected 330 jobs to be created by the site within 10 years, 265 of which would be in the Highlands and Islands, and 156 would be “well-paid manufacturing jobs on site.”HIE also said market demand for high voltage cables had increased due to developments in the North Sea and the new factory would help to reduce lead-in times for the supply of subsea cables.Scottish Government cabinet secretary for wellbeing economy, net zero and energy 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 said: “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 new factory will play an important part in our transition to a net zero economy, enabling more enterprises and communities to capitalise on opportunities around low carbon and adding to the region’s growing reputation as an excellent location for business and inward investment.Black said the Inverness and Cromarty Firth Green Freeport played a “significant part in attracting Sumitomo” to the region.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.Gillespie said SE “aims to accelerate technology innovation, supply chain capability and investment in manufacturing and key infrastructure.”Sumitomo Electric Industries describes itself as “a forerunner in the global offshore power cable manufacturing market.”Sumitomo Electric U.K. Power Cables Ltd chairman Yasuyuki Shibata said: “Establishment of a Sumitomo cable-making facility, producing state-of-the-art cable, in the United Kingdom, 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.”Like what you’ve read?