HIE welcomes £350m cable factory opening

20th October 2026

The official opening of the UK’s first HVDC subsea cable factory, located at the Port of Nigg in Easter Ross, has been welcomed by Highlands and Islands Enterprise (HIE).

The facility represents an investment of £350m. It will play a vital role in expanding the UK’s electricity transmission infrastructure and enable the efficient delivery of offshore wind power.

The project was secured with a public sector funding package of £24.5m.

Chair of HIE, Angus Campbell, said. "This is one of the biggest inward investments ever made in the Highlands and Islands, bringing hundreds of high-quality jobs and significant opportunities for businesses across the supply chain.

“The fact that high-voltage subsea cables will be manufactured here in the Highlands and deployed in our coastal waters is hugely significant. It will strengthen the UK electricity grid, support the transition to net zero and further enhance the region’s reputation as a world-class location for major investment.

“We look forward to continuing to work with Sumitomo and our partners to ensure the benefits of this landmark project are felt as widely as possible.”

The opening of this state-of-the-art factory marks an important milestone in the UK’s commitment to achieve net-zero greenhouse gas emissions by 2050.

HVDC (high-voltage direct current) subsea cables act as "electricity superhighways" beneath the sea, enabling the efficient transmission of renewable energy from the source of electricity generation to areas of demand. In the UK, these cables are expected to play a key role in connecting offshore wind resources with areas of high electricity demand, supporting the expansion of renewable energy and strengthening energy security.

Located within the Inverness and Cromarty Firth Green Freeport boundary, the new plant represents a £350 million investment in the local Highlands economy and marks a major milestone in advanced renewable manufacturing.

The brand-new flagship factory covers 58,000 square meters of floor space on a 15-hectare site. As the UK’s first HVDC subsea cable plant, we will manufacture 525kV XLPE HVDC subsea transmission cables and subsea inter-array cables.

The facility will directly create over 200 skilled local jobs, with a total projected impact of more than 400 jobs across the broader UK supply chain. This will be supported by a “Train the Trainer” model and operator training programmes conducted in Japan.

The opening ceremony for the UK’s first HVDC subsea cable facility blended Japanese culture heritage with local Scottish traditions, featuring the ceremonial Kagami Biraki - the breaking open of sake casks with wooden mallets for good fortune – alongside performances by father and son bagpipe duo from the local area.

Osamu Inoue, President of Sumitomo Electric Industries, said:
“I am delighted to celebrate the official opening of our new subsea cable factory in Scotland, following the announcement of its establishment in April 2023 and the groundbreaking ceremony held in May 2024. This factory will serve as a vital production base supporting the strengthening of the UK’s transmission infrastructure, the expansion of renewable energy deployment, and the delivery of a stable and reliable energy supply for generations to come. We are confident that the products and technologies manufactured here will contribute to the UK’s transition to clean energy and help enhance energy security.
“I would like to extend my sincere gratitude to the UK Government, the Scottish Government, our customers, partners, and all those who have provided their invaluable support and cooperation in making this facility a reality.
“Building on more than a century of experience and technological expertise in subsea cable systems, we remain committed to supporting interconnector and offshore wind projects across Europe. By helping connect the energy networks of the future, we will continue contributing to the development of a more sustainable society.”

First Minister of Scotland John Swinney said:
“This facility puts Scotland right at the heart of the energy transition and is a strong vote of confidence in our people, skills and engineering excellence. We invested £24.5 million in its construction to support hundreds of well-paid jobs in the Highlands and create lasting opportunities for future generations.

“As the first factory of its kind in the UK, it will help unlock our enormous offshore wind potential while bolstering energy security. We will continue to do all we can to create jobs, drive growth and build on Scotland’s position as the UK's leading destination for inward investment outside London.”

Secretary of State for Scotland Douglas Alexander said:
"Sumitomo Electric choosing the Highlands for the UK's first subsea HVDC cable factory shows what Scotland has to offer: the skills, ports and expertise to lead the energy industries of the future. Scotland is helping to solve one of the biggest challenges in our transition to clean energy, connecting offshore wind to where it's needed most. This development is a huge vote of confidence.
"The Port of Nigg is part of the Inverness and Cromarty Green Freeport, funded by £25 million of UK Government seed funding and designed to encourage private sector development. I very much welcome this £350 million investment by Sumitomo Electric, and the hundreds of skilled jobs it brings. It shows exactly what 'growth in every postcode' looks like in practice.”

Miatta Fahnbulleh, Secretary of State for Energy Security and Net Zero said:
“Scotland has a proud tradition of powering the country, and Sumitomo’s multi-million-pound investment will help continue that legacy while boosting the Highlands economy.
"Making subsea cables in Scotland will help us tackle the bottlenecks that block electricity from being transported across the country. We are building out our grid and building British while we do so.”

Rob McDonald, Managing Director of SSEN Transmission, said:
"The opening of Sumitomo Electric’s new cable manufacturing facility is a landmark moment, not only for Scotland’s energy transition but for its economy too - and we’re proud of the role our proposed Shetland 2 subsea cable project played as an anchor for this investment.
"The £350m facility, which will create at least 200 jobs and support hundreds more across the wider supply chain, demonstrates the scale of opportunity that comes from investing in the infrastructure needed to deliver clean power and energy security.
"At SSEN Transmission, we’re investing around £29bn over the next five years and we think facilities like this are just the beginning. With continued collaboration and greater certainty around future grid investment, planning decisions and the long-term pathway for Scotland’s renewable ambitions, there is potential to attract even more investment, skills, and jobs to communities across Scotland and the UK.”

Carl Trowell, Executive President of Global Capital at National Grid, said:
"We have established more than £28 billion of UK supply chain contracts to help deliver the infrastructure needed for the energy system of the future, supporting skilled jobs, economic growth and domestic manufacturing. As part of that programme, we have awarded Sumitomo Electric the contract to supply the HVDC cable for Sea Link, and its decision to invest in this facility reflects the confidence that long-term investment can provide. The opening of this facility marks an important milestone for UK home-grown energy and strengthens the capability needed to deliver the next generation of the electricity network."