Ming Yang's $2 billion factory plans in Scotland delayed
UK aims to decarbonise electricity sector with more offshore wind power
Octopus had agreement with Ming Yang for wind technology use
By Susanna Twidale
LONDON, March 26 (Reuters) - Britain’s government said it will not support the use of wind turbines manufactured by Chinese firm Ming Yang in offshore wind projects around the country on security grounds, leading the firm to pause plans for a 1.5 billion pound ($2 billion) factory in Scotland.
Britain is seeking to decarbonise its electricity sector which will require a huge increase in the use of renewable power, particularly offshore wind.
Chinese wind turbine manufacturer Ming Yang Smart Energy 601615.SS last year said it could invest up to 1.5 billion pounds to build a wind turbine manufacturing facility in Scotland and create up to 1,500 jobs.
"Industry have sought our view on the use of these (Ming Yang) turbines in British waters and in our energy system. After careful consideration, government's view is that we cannot support the use of them in UK offshore wind projects,” a government spokesperson said via email.
“We will always act to protect our national security, and we are committed to strengthening and prioritising resilient and sustainable offshore wind supply chains,” the spokesperson said.
Ming Yang, which is listed on the Shanghai Stock Exchange, said it was disappointed by the decision which means its factory plans will be delayed.
“We will continue to engage constructively with the UK Government, including on the important topic of national security … We continue to believe in the long-term potential of the UK market, and our planned activities remain unchanged," a Ming Yang spokesperson said via email.
The company had said that Ardersier Port near Inverness was its preferred location for the factory.
Danish wind power manufacturer Vestas VWS.CO said on Wednesday it will go ahead with a 250 million euro factory in Scotland building nacelles, which house the generator and gearboxes for wind turbines.
MING YANG HAS AGREEMENT WITH OCTOPUS
The Chinese company last year reached an agreement with Octopus, Britain's largest electricity supplier, to explore opportunities for Octopus to use Ming Yang’s technology for some of its wind projects.
Octopus said the government decision risks missing out on jobs and cheaper electricity prices.
“Given Apple and Tesla can secure phones and cars made in China, it shouldn’t be beyond British ingenuity to secure wind turbines, which are dramatically simpler,” an Octopus spokesperson said via email.
The government said it still welcomes investment from China where it is in Britain's national interest.
Use of Chinese renewable technology has proved controversial in Europe. The European Commission in 2024 launched a review into Chinese turbine manufacturers in response to industry concerns that cheaper imports could threaten the competitiveness of European firms.($1 = 0.7487 pounds)
(Reporting By Susanna Twidale
Editing by Keith Weir)
((susanna.twidale@thomsonreuters.com; +44 207 5424753;))