Siemens looks to East Coast plant

The German company, which is considering sites along the East Coast and in the North East, said the project would create 700 jobs.

Siemens is the second multinational to confirm it is planning new manufacturing facilities in Britain following the Government's announcement of a 60m competition to help to develop port sites..

Andreas Goss, UK chief executive, said: "The UK government has created a stable framework to attract inward investment in renewables and offshore wind power in particular.

"The competition for land development, announced in the Budget last week, gives us confidence that the appropriate UK port infrastructure can be made available to support our production plans."

Siemens said it is working closely with the regional development agencies and its partners to find the best location. Sites under consideration are believed to include land around the Humber owned by Able UK and Associated British Ports.

Simon Hill, executive director of business at Yorkshire Forward, wecolmed the announcement and described it as coup for the UK. He said: "The most important part of the battle has been won and we have won this for the UK against fierce European competition.

"We have a strong regional proposition with a number of sites on both the north and south banks of the Humber that offer Siemens various options in terms of manufacturing locations."

He added: "While we will of course fight for our regional benefit as a first priority, we also recognise that in the national interest we have to be more joined up where appropriate in locating these big global investments."

The North of England as a whole would benefit from the extended supply chain and Yorkshire Forward is talking to counterparts in the North East about opportunities for companies, said Mr Hill.

Siemens said it would make its decision about the exact location when the 12-week competition process for land development is complete.

Up to 60m in funding will be available to developers with a viable plan, said a spokeswoman for the Department for Business, Innovation and Skills.

She said the Government will expect bidders to demonstrate they have enough land, suitable access to transport facilities and the right surfacing.

"They are also expected to show that they have companies that are interested," said the spokeswoman.

Siemens said the new plant will help it accommodate demand driven by offshore windfarms planned for UK waters.

The East Coast of Yorkshire, from Whitby down to Hull, is well placed to benefit economically from the offshore sites planned for Hornsea, Dogger Bank and Norfolk.

Last week, GE announced plans to spend 100m in building offshore wind turbine manufacturing facilities in the UK.

A third multinational, which has not been named, is understood to be considering developing similar facilities and has looked at Humber.