Jobs boom for Hull after Siemens wind power deal clinched at last

Around 1,000 new jobs will be created directly at huge new factories in Hull and the East Riding – along with thousands more along industry supply chains –under a £310m plan agreed with the German multi-national.

This afternoon David Cameron joined Energy Secretary Ed Davey and executives from Siemens at the site of the development.

Mr Cameron said: “This is a massive investment for Hull but also a big investment for Britain.

“We already have a world leading wind market but now we’re going to be making the turbines and the blades here in Britain - and the chance to have a world leading industry employing thousands of people across this area.

“A real change for Hull and for Humberside. And great for Britain too.”

Mr Cameron’s visit marked the conclusion of four years of intense negotiations between Siemens and teams of Government Ministers, local MPs, council leaders and port owners in Hull.

Industry experts say the arrival of one of the world’s biggest manufacturers of offshore turbines will attract supply chain companies in their droves, potentially creating a further 5,000 new jobs right across Yorkshire.

This in turn moves the Humber significantly closer to its goal of becoming a global manufacturing hub for offshore turbines. The UK is already the world leader in offshore wind, and other international engineering firms are known to be considering establishing similar factories on either side of the Humber estuary.

“This is a very significant investment, not just for Hull and the Humber, but for the UK as a whole,” said Lord Haskins, chairman of the Humber Local Enterprise Partnership.

“There are few names bigger than Siemens, so this is an important development both in its own right and as a signal for what may be to come.”

The Humber is seen as the ideal location for the burgeoning offshore wind industry owing to its deep natural harbours and close proximity to several enormous wind farms the Government has earmarked for the North Sea, where thousands of 400ft turbines are to be constructed over the next decade.

“Siemens has recognised the Humber’s unique advantages,” said Peter Aarosin, chair of local business marketing body the Bondholders. “This decision is a huge vote of confidence in the Humber by one of the world’s biggest and most respected companies.”

Siemens signed a memorandum of understanding with Port of Hull owner Associated British Ports (ABP) years ago, but has stalled on a final deal due to uncertainty about the Government’s commitment to wind power.

Concern had been mounting that Siemens could abandon the UK altogether and site its new factory elsewhere on the continent.

Hull Council leader Stephen Brady said the deal marked a “huge milestone” for the city’s development, alongside other investments including rail electrification and its successful City of Culture bid. “There is now an optimism and confidence in the air throughout the city which we have been working towards for many years,” he said.

Energy Secretary Ed Davey said the Government’s policy of supporting the renewables sector with long-term subsidies is starting to bear fruit.

“This deal shows our strategy for offshore wind is working,” the Lib Dem Minister said.

Siemens’ revised plans will see its operation split across two sites in East Yorkshire.

The previously-proposed Green Port Hull development at the city’s Alexandra Dock – where ABP is investing £160m to upgrade infrastructure as part of the deal – will host a turbine assembly and service facility, while a new factory making rotor blades will be based in Paull, in the East Riding.

Matthew Chinn, managing director of Siemens Energy UK, said: “The development of local manufacturing will provide a huge boost to the UK renewables industry, and help unlock other major projects and investments.”

Friends of the Earth Yorkshire and Humberside campaigner Simon Bowens said: “This world-class manufacturing hub for the offshore wind industry will be a massive boost for the region and our environment.

“This investment, which is going ahead despite the uncertainty created by Government, is exactly what’s needed to develop the UK’s huge renewable energy potential, create jobs and reduce our dependency on dirty fossil fuel imports from abroad.

“It’s time to end the Chancellor’s fixation with fracking and squeezing out ‘every last drop’ of North Sea oil, and focus on building a clean future based on energy efficiency and renewable power.”

The leader of the East Riding of Yorkshire Council welcomed the announcement as a “historic moment for the Humber region”.

Stephen Parnaby said: “This is certainly one of the proudest moments in all my years as leader of East Riding of Yorkshire Council.

“The wide-scale economic benefits this investment will have for East Riding businesses cannot be overstated. It is also excellent news for East Riding residents, with the development providing employment opportunities in an emerging sector.

“The council will continue to work alongside Hull City Council and the private sector to provide support for local businesses in becoming part of the renewable energy supply chain and to develop the skills of the local workforce to maximise the benefits of this investment and ensure that as many of these as possible remain local to help grow the economy of the Humber.”

Mr Parnaby added: “I am absolutely delighted with this news. It has been a long road from this proposal first being mooted to it finally getting the green light to go ahead.

“It is an historic moment for the Humber region, certainly unrivalled in recent history, and will create an initial 1,000 jobs and thousands more in the supply chain and related business, providing both short and long-term economic benefits that will help transform the area’s economy.”

Caroline Flint, shadow energy and climate change secretary, said: “This investment will be warmly welcomed across the Humber, not least by Hull’s MPs, councillors and local businesses who have campaigned for it ever since Siemens announced its decision to invest in new manufacturing facilities in 2010, under the last Labour government.

“All too often in the past the UK has missed out on investment because of the Government’s mixed messages on clean energy. As this decision shows, the UK has the potential to be a world leader in clean energy. Labour would provide the certainty and clarity investors need to create more jobs and manufacturing in Britain by setting a decarbonisation target for 2030.”

Nicola Walker, the CBI’s director for business environment, said: “This investment is great news for Hull with 1,000 new manufacturing jobs created. It shows the UK is well placed to become a world leader in the construction and development of renewable energy generation.

“Getting Royal Assent for electricity market reform was hard work, but now we’re starting to see the benefits of making the UK a more attractive place to invest.”