Dong Energy supports CS Wind's offshore tower factory in UK

Dong Energy A/S (CPH:DENERG) has made a multi-million pound investment that will allow CS Wind Corp (KRX:112610) to build an offshore tower manufacturing facility in Campbeltown, Scotland, it was announced today.

The South Korean wind tower maker will construct the new facility near its existing plants in the country. It will have the capacity to manufacture 50 towers a year and will be the first factory in the UK to produce such components for offshore wind turbines.

Because of its investment, the Danish energy group will get preferred access rights to towers for its own offshore wind projects, it said.

"Developing the supply chain in the UK is a strategic priority for DONG Energy. We plan on building more wind farms here, so this investment now will ultimately help us meet our targets in reliably delivering projects on time while bringing down the cost of offshore wind," said Dong Energy’s UK chairman Brent Cheshire.

Germany’s Siemens (ETR:SIE) has ordered the initial 95 towers that will be built at the CS Wind site. Earlier this year, CS Wind UK signed a memorandum of understanding (MoU) with Siemens as it broke ground in July on the GBP-27-million (USD 33.7m/EUR 32m) expansion of its Campbeltown factory. The pact calls for CS Wind UK to produce up to 200 offshore towers for the German group between 2017 and 2019.

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