Vestas, a wind turbine manufacturer which employs more than 35,000 people worldwide, said it would invest “in excess of €250m” (around £217m) in a new plant to produce nacelles and hubs – the two components at the top of a wind turbine which hold the blades.
However, the investment in the factory is “conditional on securing sufficient UK-based orders”.
Vestas is hoping to win orders following Allocation Round 7 (AR7) of the UK Government’s Contracts for Difference (CfD) scheme – the main mechanism used to support new renewable electricity projects, especially offshore wind.
READ MORE: Why UK consumers paid £1.5bn to shut down wind farms in 2025
Henrik Andersen, the chief executive of Vestas, said: “The UK Government has made a big statement with AR7, showcasing how wind energy creates a positive impact on energy security, sustainability, and affordability for end consumers.
“We welcome the UK and Scottish Governments’ dedication to fostering a competitive offshore wind market and look forward to working together to progress our co-investment plans.
“Establishing a nacelle and hub assembly factory in Scotland would create hundreds of local jobs and support further jobs across the wider supply chain, delivering long‑lasting economic benefits to the region.”
Deputy First Minister Kate Forbes said: “Vestas’s proposal to develop a hub and nacelle factory in Scotland, with the potential to support hundreds of jobs, speaks to the huge potential of the Scottish offshore wind sector and our attractiveness as an investment destination.
“Scottish Ministers have engaged closely with Vestas since 2021, and we look forward to continuing to work with the company and delivery partners to develop our offshore wind supply chain and deliver long-term economic benefits for our communities.”
And UK Energy Secretary Ed Miliband said: “The Government’s clean energy mission is delivering good industrial jobs for Scottish workers-boosting growth as part of our drive to give the UK energy security.
“This is happening because of the Government’s record-breaking offshore wind auction and the confidence our mission has given industry to invest in Scotland. We will not stop in driving to create many more jobs like these for Scotland and the UK.”
The CfD scheme sees the UK Government guarantee electricity prices from renewable developments, allowing investors to have confidence in returns.