Moving the money around in sale of Machrihanish Wind Towers Scotland to South Korea’s CS Wind

Perth headquartered energy company, Scottish & Southern Electricity [SSE] and Highlands and Islands Enterprise [HIE} have just sold on to South Korea’s CS Wind the wind turbine tower production company they established as owners in 2011 at the serially owned plant at Machrihanish in Kintyre.

The figure for which they have sold WTS is not being made public – which indicates that it has probably been sold at a loss – but the outcome means that SSE has unburdened itself of its 81% share and HIE of its 19% share.

Given HIE’s responsibilities, this will see it free up money to filter into other enterprises in its region; and in SSE’s case, wiht yhe  ajor share of th sale price, it will help to fund the major investment – half a £Billion – that the company is making in subsea grid connections for renewable energy in the north of Scotland.

SSE had just announced the investment – in a 1200 MW subsea cable between Spittal in Caithness and Blackhillock in Moray – as part of its overall £1.2bn overall investment in the electricity transmission network in the north of Scotland. The European Investment Bank is putting up some of the funding.

This project is the largest investment in the electricity network in the north of Scotland for 60 years. It will create 600 jobs during the construction phase and fuel SSE’s in-house apprentice, trainee engineer and graduate programmes.

CS Wind is to invest £14 Million in the Machrihanish plant, in a move which would seem designed to protect the competitive position of the plant, secure the 134 jobs supported by current activities and create a further 70 jobs.

Argyll and Bute Council had, of course, earlier invested substantially in developing the habour at Campbeltown and the road approaches to it. to enable WTS to ship out turbine sections from there as appropriate.

With the Scottish Government – to the alarm of some and the approbation of others – having just announced its renewed commitment to getting even more wind farms into Scotland, CS Wind may well be aware of – and been made aware of – commercial opportunities arising from this pledge.

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Related Articles & Comments

  • I wonder when we will learn that the Chinese own Prestwick, it looks like the SG is flogging everything and anything.

    Hot debate. What do you think? Thumb up 16 Thumb down 5

    richard April 3, 2016 10:09 pm Reply
  • Your assuming that SSE and HIE are getting what they put in to the deal in the first place? It’s not a time for buying st full money or good money. If we’re not hearing the price then take it that it’s a big fat loss to both SSE and HIE it looks more like pass the parcel before pulling the plug?

    Hot debate. What do you think? Thumb up 13 Thumb down 3

    MB April 3, 2016 11:19 pm Reply
  • On the face of it, good news – but there are plenty of examples of Scottish / British companies snapped up by foreign rivals with brave words of further investment and more employment, only for the businesses to be closed down when the latest owners found it was cheaper to concentrate their activities elsewhere.

    Like or Dislike: Thumb up 10 Thumb down 1

    Robert Wakeham April 4, 2016 2:21 pm Reply
  • It looks as if this news might be about to be overshadowed by something a lot more shadowy – NCH, HJ, Keitho & co, perhaps you could enlighten the rest of us to the nature of the £10 billion memorandum of understanding that Nicola Sturgeon signed on 21st March with the Sinolinks / Liaoning Fortone joint venture and the China Railway no 3 Engineering Group?
    She has been remarkably quiet about launching this (some sort of preferred partner?) relationship, but there again perhaps the Chinese government’s modus operandi is somewhat closer to her heart than those of her north European neighbours?

    Like or Dislike: Thumb up 6 Thumb down 1

    Robert Wakeham April 4, 2016 9:38 pm Reply
    • Any deal with CRG has to be made under the most intense scrutiny and there is a clear concern that this particular MoU has been driven through in a way that makes it hard to believe that that appropriate scrutiny has been carried out, at least not openly and transparently.

      It does give me cause for alarm if we are going to be considering inward investment from corporations such as these. I dare say someone will come back with reference to a deal made by Westminster Govt with equally shady corporations and I accept that entirely – however all that would so is suggest that some people are happy to be as bad as those that they openly criticise.

      Like or Dislike: Thumb up 4 Thumb down 1

      Integrity? April 5, 2016 11:20 am Reply
    • Before the thread deteriorates into wild speculation about the MOU, here is the actual document:

      Like or Dislike: Thumb up 0 Thumb down 0

      jake April 5, 2016 12:16 pm Reply
  • Shadowy you say Robert. The Panama leak is certainly exposing shadows and it seems that here in our own little corner of the world it’s coming to light that swathes of Scotland are owned by offshore companies. One such estate involves lands in Jura held by the family of David Cameron’s wife. Other lands held by offshore companies involve the Bucleugh Estates as well as lands owned by the Vesteys. And did David Cameron’s late father hold any Scottish lands offshore or was it just the family millions stuffed into Blairmore Investments now exposed in the Panama papers.Seems that for the Tories paying tax is optional and one can see why these cancerous scum wanted to cut support to the weakest in society. Maybe at least the good citizenry of Argyll and the islands will be able to get jobs cleaning toilets for these folks as the Newsroom exhalts us all to vote Conservative.

    Like or Dislike: Thumb up 2 Thumb down 3

    Willie April 5, 2016 8:04 am Reply
    • Willie, you should be very careful about making accusations about people, I hope you are confident in being able to prove wrong doing, as for large estates in Scotland being owned by foreign investors there’s nothing new.
      I have asked before why haven’t Scots bought these estates when they came up for sale, why aren’t Scots prepared to invest heavily into these estates?
      I look forward to your answers Willie.

      Like or Dislike: Thumb up 2 Thumb down 1

      richard April 5, 2016 12:51 pm Reply
  • Well Willie I am sure that the SNP will now put everything right given the new powers they agreed too, and signed for…what say you ?

    Anyhow, how do you feel about another Scottish asset/business being sold off to an “overseas” foreign company… ? part of the ethereal ” Saudi of renewables” club.

    Like or Dislike: Thumb up 4 Thumb down 2

    Karl Hughes April 5, 2016 8:16 am Reply
  • Foreign Argyll and its usual Scotland attackers. AS for Saudia wee bit two faced Carol when you work in Tax avoidance paradise of Iraq. Both you and they benefitted from the illegal war. Iraq has been stripped entirely.
    You should know but maybe not, that the old SSEB etc were privatised by Thatcher and henchmen when the stripped Scotland. No doubt some of the proceeds went to Panama, Switzeland , Isle of Man Jersey etc

    Like or Dislike: Thumb up 0 Thumb down 4

    No Cheese Here April 5, 2016 12:28 pm Reply
    • NCH, you should look a lot closer to home, for a start Glasgow.

      Like or Dislike: Thumb up 3 Thumb down 1

      richard April 5, 2016 12:54 pm Reply
    • NCH

      SSEB??? ..and who fell in love with Spain? None other than your messiah,Alex S, after the sale of Scottish Power to Iberdrola, with his adoring declaration ‘I am a Basque’

      Let’s not forget he used a trip to the Basque Country to promote a Basque translation of his memoires, The Dream Shall Never Die.

      Surely you are not implying Alex S may have set up an offshore account to launder the proceeds?

      Like or Dislike: Thumb up 2 Thumb down 1

      Scotnat April 5, 2016 1:24 pm Reply
  • Hi again Lynda
    I notice that ACHA are to receive a payment of £176k to assist those having problems with managing their finances under the government’s new welfare scheme. Given that there are many, many housing associations in Scotland , can we assume that such a payout will cost umpteen millions. Even the extra staffing arrangements will be very costly.
    Where is the SNP getting all this extra cash?

    Like or Dislike: Thumb up 1 Thumb down 1

    Elaine Vassie April 5, 2016 1:43 pm Reply
    • ACHA, has 25 empty properties on their website.

      Like or Dislike: Thumb up 2 Thumb down 2

      richard April 5, 2016 4:19 pm Reply

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