Siemens mulls UK wind turbine factory

Fresh from announcing that the world's largest wind turbine blades are to built at a factory in the North East, the government is in hot pursuit of another major coup that could see the world's largest turbine manufacturer, Siemens, open a manufacturing plant in the country.

According to reports in the Observer over the weekend, Prime Minister Gordon Brown is to meet with Siemens chief executive Peter Löscher to assure him that the government will be able to offer considerable support to any new factory.

The government is keen to rebuild bridges with the wind energy industry after Danish firm Vestas closed its main turbine manufacturing plant in the UK this summer, amid accusations that repeated delays to planned wind farms meant there was not enough demand to justify the facility.

Brown is expected to tell Siemens that the planning problems that have afflicted the onshore market will not affect the proposed Round 3 expansion in offshore wind farms, and as such the UK can guarantee a healthy market for any domestic offshore turbine factory.

René Umlauft, chief executive of Siemens Offshore Wind, told the Observer that the UK was being considered by the company as a location for a new facility. "We are looking at two locations [for factories] in the UK, one in Denmark and one in Germany," he said. "Great Britain has the advantage of Round 3, which could result in a huge market."

The government could also offer a package of incentives to help attract the company. Last week it announced that it would provide a £1.1m grant to help the firm develop an offshore wind "converter" and further grants could be on the cards as part of the government's various Low Carbon Energy funds.

The Observer reported that one of the proposed sites is in the North East, while the second is expected to be in East Anglia. A final decision is expected within the next 12 months.