Dundee has been dealt a major blow, with wind turbine manufacturer Gamesa announcing it has ruled out building a multi-million-pound factory in the city that would have created 1,800 jobs.
The Spanish company issued a statement just before 4pm on Friday announcing Dundee is no longer being considered as a manufacturing base because there is not enough space at the port.
The decision comes less than a year after the firm signed a memorandum of understanding to explore the possibility of investing in the city.
Despite the loss of Gamesa, city leaders remain confident the offshore wind sector will lead to a manufacturing boom in Dundee. Several companies are said to be interested in investing, with Perth-based SSE publicly declaring its interest less than two hours after the Gamesa announcement.
Dundee which has long been regarded as a prime site for investment by renewable energy technology firms was competing with Hartlepool to secure the 150 million euro Gamesa deal. It has now emerged that the company may opt to invest in Edinburgh instead of either location, after it was suggested as an alternative site by Forth Ports, the company which also owns Dundee Port.
A statement issued by Gamesa stated: ”Gamesa estimates that the investment in the UK within its offshore plan will amount to some 150 million euros, and as such requires thorough analysis of all potential sites.
”Gamesa can confirm that Dundee is no longer an option for the company. Dundee can’t accommodate Gamesa’s foreseen offshore requirements in terms of timescales and scope in order to achieve the company’s overall business plan objectives regarding the manufacture of our offshore wind turbines.
”As a result, Leith offered by Forth Ports whilst also taking into consideration the infrastructure programme recently announced by Scottish Enterprise is now being considered as an alternative site that merits thorough evaluation by Gamesa. Hartlepool also continues to be evaluated by Gamesa and the company continues an open dialogue, exchange of information and negotiation with PD Ports regarding this.”
The statement continued: ”Gamesa estimates the development of its offshore wind business in the United Kingdom will create over 1,000 direct jobs and a further 800 indirect jobs locally.”
Forth Ports chief executive Charles Hammond said he still believes Dundee will become key to Scotland’s offshore wind industry.
He said: ”We are working closely with a number of potential manufacturers in the renewables industry as well as the Scottish Government and Dundee City Council. There is a high level of interest in the Port of Dundee as a location for a renewables hub and we are making good progress with these inquiries. We are confident that Dundee will play a major role in the Scottish renewables industry.”
That view was backed later in the afternoon when SSE which works with technical partners Siemens and Mitsubishi announced it is considering a significant investment in Dundee.
A spokesman said: ”Along with our supply partners, SSE has been considering a number of locations that might be suitable as support sites for future offshore renewable operations. No announcement around this has been made yet, but Dundee continues to be one of the strongest locations under consideration.”
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A Scottish Government spokeswoman said: ”This news comes after many months of intensive work to create optimum conditions for the company’s future in Dundee. However, Gamesa’s space requirements were more than the land available at the port.
”It is important to recognise that the port and surrounding area is recognised as strategically important within the National Renewables Infrastructure Plan and continues to attract strong interest from investors in the renewables sector.
”Dundee will undoubtedly play an important part in Scotland’s renewables industry going forward and we are optimistic that there will be positive news in the very near future.”
A spokesman for Dundee City Council said: ”While we are clearly disappointed with today’s announcement, the council and its partners in Dundee Renewables will redouble the efforts to bring to fruition a number of other opportunities in the sector that will attract investment and jobs to the city.
”Along with our partners at Forth Ports, Scottish Enterprise and the Scottish Government, we are talking to a number of companies who are looking to confirm their commercial interest to help release the potential in Dundee and Scotland.
”The case for the city and its port is being vigorously promoted at the highest levels because we believe that Dundee is Scotland’s most suitable port location for the development of the offshore wind industry.
”We are putting forward our strengths that include deep water facilities, excellent transport links, available development land and also our experience of building on workforce skills with Dundee College.
”As the offshore renewables industry develops over the next few years, we believe that a number of opportunities are available to Dundee.”
Local politicians expressed disappointment at Gamesa’s decision, but said the effort to attract jobs from the renewables sector will continue.
Dundee City West MSP Joe FitzPatrick said: ”While it is disappointing that Gamesa has decided that Dundee doesn’t meet their requirements, there are other companies looking at Dundee and we remain strongly optimistic that a positive announcement will be made in the very near future.” Shona Robison, the MSP for Dundee City East, said: ”Dundee will play an important part in Scotland’s renewables future. Dundee port is recognised as a strategically important location for the new sector.”
Dundee East MP Stewart Hosie said there is still ”the potential to bring hundreds of much-needed highly-skilled jobs to the city and all partners are working extremely hard to make this happen.”
Dundee-based MSP Jenny Marra described Gamesa’s decision as ”very disappointing”, adding: ”I will be contacting the Scottish Government to see what support they are putting in place to make sure other companies find the right conditions to invest in Dundee.”
Kevin Keenan, leader of the Labour group on Dundee City Council, said: ”It is a bitter blow for the city and we need to do what we can with all the economic development agencies to deliver jobs for the city.
”Dundee badly needs manufacturing jobs. We have a lot to offer and we are really crying out for jobs. It would have been a really good Christmas present for Dundee to get these jobs.”
Photo by Gareth Fuller/PA Archive
A Scottish Government spokeswoman said: ”This news comes after many months of intensive work to create optimum conditions for the company’s future in Dundee. However, Gamesa’s space requirements were more than the land available at the port.
”It is important to recognise that the port and surrounding area is recognised as strategically important within the National Renewables Infrastructure Plan and continues to attract strong interest from investors in the renewables sector.
”Dundee will undoubtedly play an important part in Scotland’s renewables industry going forward and we are optimistic that there will be positive news in the very near future.”
A spokesman for Dundee City Council said: ”While we are clearly disappointed with today’s announcement, the council and its partners in Dundee Renewables will redouble the efforts to bring to fruition a number of other opportunities in the sector that will attract investment and jobs to the city.
”Along with our partners at Forth Ports, Scottish Enterprise and the Scottish Government, we are talking to a number of companies who are looking to confirm their commercial interest to help release the potential in Dundee and Scotland.
”The case for the city and its port is being vigorously promoted at the highest levels because we believe that Dundee is Scotland’s most suitable port location for the development of the offshore wind industry.
”We are putting forward our strengths that include deep water facilities, excellent transport links, available development land and also our experience of building on workforce skills with Dundee College.
”As the offshore renewables industry develops over the next few years, we believe that a number of opportunities are available to Dundee.”
Local politicians expressed disappointment at Gamesa’s decision, but said the effort to attract jobs from the renewables sector will continue.
Dundee City West MSP Joe FitzPatrick said: ”While it is disappointing that Gamesa has decided that Dundee doesn’t meet their requirements, there are other companies looking at Dundee and we remain strongly optimistic that a positive announcement will be made in the very near future.” Shona Robison, the MSP for Dundee City East, said: ”Dundee will play an important part in Scotland’s renewables future. Dundee port is recognised as a strategically important location for the new sector.”
Dundee East MP Stewart Hosie said there is still ”the potential to bring hundreds of much-needed highly-skilled jobs to the city and all partners are working extremely hard to make this happen.”
Dundee-based MSP Jenny Marra described Gamesa’s decision as ”very disappointing”, adding: ”I will be contacting the Scottish Government to see what support they are putting in place to make sure other companies find the right conditions to invest in Dundee.”
Kevin Keenan, leader of the Labour group on Dundee City Council, said: ”It is a bitter blow for the city and we need to do what we can with all the economic development agencies to deliver jobs for the city.
”Dundee badly needs manufacturing jobs. We have a lot to offer and we are really crying out for jobs. It would have been a really good Christmas present for Dundee to get these jobs.”
Photo by Gareth Fuller/PA Archive