SeAH Steel Holdings Partners with UK Government to Enter Offshore Wind 'Monopile' Market

SeAH, First Domestic Entry into UK Offshore Wind Foundation Structure Market

[Asia Economy Reporter Hwang Yoon-joo] SeAH Steel Holdings Co., Ltd. is partnering with the UK government to participate as a manufacturer of monopiles, the foundation structures for offshore wind power projects, which are national projects in the UK. This marks the first time a Korean company has directly entered the UK offshore wind foundation structure market. SeAH Steel Holdings plans to leverage this opportunity to become a global top player in the offshore wind structure market.

SeAH Steel Holdings announced on the 20th that it signed a Memorandum of Understanding (MOU) with the UK government at the British Embassy located in Jung-gu, Seoul, to establish a world-class monopile production facility. Accordingly, it plans to build a factory in the UK with an annual production capacity of 160,000 tons capable of manufacturing extra-large monopiles. This will be the largest single factory of its kind in the world.

SeAH Steel Holdings aims to start commercial production from the first quarter of 2023 and sell more than 100 monopiles annually, which corresponds to half of the UK's annual monopile demand. The UK government will actively support SeAH Steel Holdings' market establishment by facilitating early contracts with offshore wind operators, selecting optimal locations, and providing R&D projects.

A "monopile" is a type of foundation structure for offshore wind power and accounts for 70% of the European foundation structure market. In particular, although the UK is a powerhouse in offshore wind and accounts for 45% of Europe's monopile demand, it has imported all monopiles due to the absence of domestic production facilities. Recently, the UK has designated offshore wind as a key industry under its "Green Industrial Revolution for Economic Revival." Through SeAH Steel Holdings' factory establishment, the UK will be able to produce monopiles domestically. For SeAH Steel Holdings, which has been striving to diversify its portfolio, offshore wind is expected to become a new growth engine for sustainable growth in the future.

The background for the UK government's collaboration with Korea's SeAH Steel Holdings to develop the offshore wind industry includes SeAH's experience in securing major global offshore wind projects, global infrastructure, long-standing expertise, and trust in delivery and quality. Given the critical importance of high-quality welding technology for monopiles, SeAH Steel Holdings' long experience in welded steel pipes was a decisive factor. Its experience in supplying jacket-type offshore wind foundation structures manufactured using the infrastructure of its Suncheon plant in Korea and UAE plant to major global offshore wind projects was also highly evaluated.

Gerry Grimstone, UK DIT (Department for International Trade) and BEIS (Department for Business, Energy and Industrial Strategy) Joint Investment Minister, said, "Through this MOU with SeAH Steel Holdings, I believe it will positively contribute to strengthening the UK's position in the European offshore wind market and attracting more foreign companies."

Lee Joo-sung, Executive Vice President of SeAH Steel Holdings, also stated, "We are pleased to enter the UK offshore wind foundation structure market with the active support of the UK government. Taking this opportunity, we plan to further diversify and specialize our offshore wind business and leap forward as a top player in the global offshore wind structure market."

This content was produced with the assistance of AI translation services.