Scores of workers have been left facing redundancy at a huge wind farm factory amid “ongoing financial pressures”.
Staff at SeAH Wind, based in Teesside, have been warned of a possible restructuring at the plant and of “potential redundancies”, with up to 100 jobs at risk.
Around 380 people work at the plant, which makes the monopiles that anchor wind turbines to the seabed.
The £900million megafactory, near Redcar, is large enough to contain 14 football pitches.
South Korean firm SeAH had been chosen to supply monopiles for the Hornsea 3 project, which is set to be the world’s largest single offshore wind farm when it opens next year.
Located off the Norfolk Coast, Hornsea is operated by Danish giant Orsted.
But the contract was cancelled in February, with both companies saying they had “mutually agreed to discontinue monopile production” for the project.
A second contract, with German firm RWE, was also recently altered.
Around 380 people work at the plant, which makes the monopiles that anchor wind turbines to the seabed
|
PA
SeAH had been due to work on its Norfolk Vanguard West project but said both companies “have mutually agreed to adjust the manufacturing scope”.
SeAH will continue to manufacture for Vanguard East, a sister project.
It also builds monopiles for export to Europe and the United States. Staff at SeAH were reportedly told last week that a restructuring would be underway.
One told TeessideLive: “On Friday, we didn’t really know what was going on and then we all got an email on the afternoon. It looks like they want to cut half the workforce.
“It is really worrying and the worst thing is not knowing what’s going to happen. Obviously people have families to provide for.”
An email sent to staff read: “We understand that this is an uncertain time and we are committed to being as open and transparent as possible throughout the process.
“As soon as we enter the consultation period, we will be sharing further details. Our aim is to ensure the process is fair clear and aligned with the organisation’s future direction, while also supporting colleagues wherever possible.”
It said that the proposals were “driven by ongoing financial pressures”.
A “reduction in customer demand” was among contributing factors.
“To ensure the long-term sustainability of the business and our ability to continue operating effectively, we are proposing changes to our organisational structure,” it read.
A spokesman for the GMB union said: “GMB is aware of reports of potential jobs losses at SeAH wind.
“We have been working with our reps, company management and Government departments to protect jobs on site and the future of green energy production in the UK.”
The union said the announcement was “extremely upsetting for our members and their families, who have shown continued commitment and professionalism throughout a challenging period”.
The site is in the North East of England
|
GETTY
The enormous monopiles can measure nearly 400 feet in length with a diameter of more than 30 feet. They weigh around 3000 tonnes.
SeAH said in 2024: “We aim to become the first monopile manufacturing company in the UK and make a significant contribution to the UK economy.”
SeAH is partly underwritten by the Government through UK Export Finance. South Korea’s equivalent scheme has also offered backing, meaning it has financial guarantees of some £590million.
The manufacturing firm, owned by South Korea’s SeAH Steel Holding, broke ground at Teesworks in 2022.
SeAh has been contacted for comment.