In a deal not yet completed but described by Danish firm Welcon as ‘very likely’, the plant currently operated by the departing Vestas will be taken over by Welcon.
Its plan is to upgrade the plant and move to the production of offshore wind turbines, boosting jobs in the area from the current 96 to 300-400 within two years.
It is understood that the company will also upgrade Campbeltown harbour and the local road network. Well, let’s be realistic – it’s unlikely to be the company doing all of this. There has to be a very substantial Scottish Government subsidy to enable such sweeping development and of course there is.
Argyll’s MSP, Jim Mather, Minister for Enterprise, has been working on this solution, well below the media radar, since Vestas announced their departure. Rather than berate the company he has used their contacts to build this exhilarating outcome. It not only saves local jobs and prevents skills being lost to Argyll but takes the entire enterprise to a new and unanticipated level.
What is encouraging about this deal and about what must be a serious Government investment, is that it is clearly based on a vision of the strategic value of Campbeltown’s position and potential transport infrastructure in the expanding world of renewable energy technology.
Within easy distance of the Sound of Islay and the North Channel, a cutting edge and innovative plant at Campbeltown cannot but prosper, with the possibility of moving into tidal turbine production as a future-proofed option.
The sheltered harbour in Campbeltown Loch is a transport advantage which will be powerfully enhanced by upgrading.
The mysteriously long runway at Machrihanish Airport could come in to its own in air transport of offshore turbines all over the world. The runway is more than capable of taking the biggest transport planes like the Boeing Globemaster, the Airbus 400M or the ageing Antonov. And the plant is actually in the same land complex as the airport. Room to think big.
Whatever the Scottish Government investment in this initiative, it is one for the future. Welcon may well follow Vestas in taking off in pursuit of subsidies elsewhere once the period they commit to at Campbeltown comes to an end. But the market profile, the skils and the infrastructure will be there to move with the times. This is an industry with a certain future and it is an industry in which Scotland is recognised as leading the way.
Welcon has reached an agreement with Vestas. It is in talks with Highlands and Islands Enterprise (HIE) and Scottish Deveopment International (SDI) which are described as crucuial and at an advanced stage.
Jesper Ohlenschlaeger, CEO of Skykon, Welcon’s parent company is saying that the company hopes to reach a final agreement next month. The company, a major manufacturer of turbines, has been unsuccessful before in attempting to set up its first UK operation in Dundee so its first UK plant may now be at Campbeltown.
Welcon’s plan is to change the current maufacturing of onshore turbines, generating 2-3MW, to offshore turbines generating 5-7MW but Ohlenshlaeger sees units generating 10MW as being the market standard in a couple of year’s time.
Unsurprisingly there are no details of the figures involved. Welcon are not saying what they are paying Vestas (it won’t – or it should’nt – be much since Vestas gave their reason for moving as an obsolete plant manufacturing obsolete turbine designs). Similarly they are not saying what the overall investment figure is except that it will be ‘double-digit’ millions – a figure thought to be at least £50million and almost certainly much more than that.
Ohlenschlaeger did tell The Sunday Herald that public sector investment would be a minority shareholding, which, if it is the case, would be a change for HIE. Also if it is the case, it will mean a serious investment from the company which is an encouraging statement of intent.
The certain thing is that the Scottish Government’s investment in this development is a significant and much-needed commitment to the development of Argyll’s economy.