SeAH Steel Holdings Invests 400 Billion KRW in UK Offshore Wind 'Monopile' Factory

Participation as a 'Monopile' Manufacturer in the UK Government Offshore Wind Project Value Chain
Approximately KRW 400 Billion Investment Over 3 Years Through Local Establishment 'Seawind' in February This Year

[Asia Economy Reporter Hwang Yoon-joo] SeAH Steel Holdings Co., Ltd. is ramping up large-scale investment to build a production plant for offshore wind power foundation structures called ‘monopiles’ in the UK.

SeAH Steel Holdings announced on the 8th that it will invest approximately 400 billion KRW over three years to establish a ‘monopile’ factory and set up facilities in the UK.

After signing a Memorandum of Understanding (MOU) with the UK government in August last year to build a world-class monopile production facility, SeAH Steel Holdings decided to participate as the sole manufacturer of monopiles in the offshore wind power project value chain led by the UK government. Recently, detailed arrangements such as exclusive port development and subsidy benefits with the UK government have been finalized.

The investment will be made through SeAH Wind, established locally in February this year by SeAH Steel Holdings to enter the global offshore wind foundation market. As part of this, SeAH Steel Holdings announced a capital increase of about 50 billion KRW in SeAH Wind on the 6th. Domestic green finance investors are also expected to participate as financial investors in SeAH Wind. ‘Green finance’ refers to financial resources limited to investment in eco-friendly business sectors such as renewable energy and energy efficiency. Including the funds raised this time, SeAH Wind plans to leap forward as a top player in the UK offshore wind power market through a total investment of 400 billion KRW over the next three years, covering real estate, production facility construction, R&D, and more.

SeAH Wind’s monopile factory will be built at the Able Marine Energy Park (AMEP), located south of the Humber River in North Lincolnshire, UK. The Able Marine Energy Park was designated as a specialized offshore wind port by the UK government in February this year, and global offshore wind turbine and tower manufacturers are moving in, making it the largest offshore wind specialized industrial complex in the UK. SeAH Steel Holdings has secured about 74,000 pyeong (approximately 244,000 square meters) of exclusive factory land within the Able Marine Energy Park, enabling it to have the world’s largest monopile manufacturing capacity for a single plant.

SeAH Wind initially planned to build monopile production facilities with an annual capacity of 160,000 tons, but to respond to the increasing demand for monopiles due to the rapid growth of the global offshore wind power market, it expanded the production scale by 150% to 240,000 tons annually compared to the original plan. SeAH Wind began construction of the local monopile factory in early 2022 and aims to start factory operations within 2023.

Lee Ju-seong, Vice President of SeAH Steel Holdings, said, “We consider it meaningful that investment in the UK monopile production plant is being actively promoted based on the UK government’s strong support and trust,” adding, “We plan to actively target the offshore wind foundation markets in the US and Asia going forward.”