Hyundai Partnership Signals Vote Of Confidence In Scotland

17th April 2024

Deputy First Minister Shona Robison has welcomed the signing of a partnership between Scottish enterprise agencies and HD Hyundai Heavy Industries, which will unlock expertise in the design and manufacture of floating offshore wind substructures.

Scottish Enterprise (SE) and Highlands & Islands Enterprise (HIE) signed a Memorandum of Understanding (MoU) with the company in Edinburgh, described as a "vote of confidence" in Scotland, committing each other to pursue opportunities for floating offshore wind projects here. It is the company's first agreement in Europe on floating offshore wind manufacturing.

HD Hyundai Heavy Industries is the world’s largest shipbuilding company and a major manufacturer of equipment such as the floating substructures that form a critical part of the multi-billion offshore wind supply chain.

The latest in a series of key developments in the sector, the MoU follows the First Minister’s announcement of strategic investment of up to £500 million over the next five years to unlock private investment in ports, manufacturing and assembly work to anchor the offshore wind supply chain in Scotland.

It also builds on recent announcements of international investment into the renewable energy supply chain, including the planned £350 million Sumitomo cable factory in the Port of Nigg, based in the Inverness and Cromarty Firth Green Freeport area. Up to £24.5 million of funding has been committed to this project by the Scottish Government, SE and HIE.

Deputy First Minister Shona Robison, who witnessed the MoU signing, said, "This partnership agreement is a vote of confidence in Scotland and our offshore wind industry - demonstrating our ability to develop the international relationships upon which investment that will help us reach our climate targets is founded.

“Scotland’s offshore wind sector is key to our transition to net zero and this partnership is the next step forward in realising the economic opportunities from our floating offshore wind potential.

“Scottish Enterprise and Highlands & Islands Enterprise are playing a vital role in supporting a fair and just transition for the energy sector. Collaborations between our economic development agencies and global leaders with world-class expertise, such as HD Hyundai Heavy Industries, are key to delivering that ambition. This collaboration will play a key role in helping Scotland meet its climate targets.”

Senior Vice President of Corporate Planning Division and Wind Energy Business, HD Hyundai Heavy Industries, Hannae Choi, said, "We are currently exploring ways to collaborate with various partners to develop the offshore wind market, including establishing a manufacturing supply infrastructure.

“We plan to expand the market by leveraging our world-class know-how in designing and manufacturing floating structures.”