Doosan Power pulls Scottish offshore wind investment
19th April 2012
Doosan Power Systems has halted plans to invest £170 million in the Scottish offshore wind market, citing lack of investor confidence.
The Korean energy technology and engineering company announced a year ago
it was going invest in manufacturing and wind power
research and development in Scotland
. Doosan Power
planned to develop a new turbine measuring more than six megawatts (MW) to specifically meet the needs of the UK and Eurpean offshore wind at an R&D centre in Renfrew.
But in a statement issued today, the company said it was "withdrawing" the plans due unstable economic conditions.
"In light of the overall economic conditions and liquidity issues in Europe, Doosan Power Systems decided in December 2011 to withdraw from its plans for developing offshore wind turbines in Scotland."
The decision is a major blow for the UK and Scottish offshore wind sector. It was estimated the investment would have created 700 direct jobs and a further 1000 indirect ones.
At the time of the announcement last March, Scottish First Minister Alex Salmon said Doosan’s investment underlined "Scotland’s growing reputation for excellence and innovation in clean energy design and engineering."
Doosan, a relative latecomer to the wind business, is behind a 3MW wind turbine.Last year, it announced plans for a 6MW turbine that it wanted ready to launch in 2015.
Doosan said it informed the Scottish Government and potential customers about its decision back in December and was not prevented from releasing the news by the Scottish Government ahead of elections in May, as some reports suggest.
The company said it remains "committed to working in Scotland and the UK as a whole".
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