This item was published during the term of a previous administration that ended in April 2007
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UK's first wind turbine factory to be built in the Highlands
19/06/2001
The UK's first wind turbine factory will be built in Scotland, Highlands and Islands Minister, Alasdair Morrison announced today.
The facility at Machrihanish, near Campbeltown will create 124 direct jobs and 44 indirect for the local economy.
Mr Morrison also announced major European funding of £3.6 million for this project from the Highlands and Islands Special Transitional Programme.
It will be built for Vestas, a Danish company who are the world leaders in the manufacture of wind turbines. As a result of this investment, for the first time wind turbines will be manufactured in Scotland rather than abroad.
Mr Morrison said:
"This inward investment is a groundbreaking step for Scotland and the UK. It is also a tremendous endorsement of the local workforce in Kintyre who will benefit by the creation of 168 jobs and will see a welcome boost to the local economy. Recently Kintyre has had a number of economic set backs. But this is this is exactly the type on inward investment we wanted to see for Kintyre.
"Using more renewable energy is important to help reduce the effects of climate change. But it also represents an important economic opportunity for Scotland, with its huge potential for more use of wind and water power.
"Vestas' announcement that they are to manufacture wind turbines at Machrihanish is a welcome endorsement of the Executive's plans to significantly increase the use of renewable energy in Scotland.
"Vestas are the world leaders in world turbine manufacture, with 30% of the global market. They have supplied many of the wind turbines already operating in Scotland, but previously these have been manufactured in Denmark.
"The £3.6 million European funding offers an excellent example of European Programmes being used to address our priorities by supporting fragile economies such as Kintyre.
"The Executive is working to make sure that more opportunities like this are exploited to benefit the economy of Scotland wherever possible."
BACKGROUND
The opening of the Machrihanish manufacturing facility near Campbeltown on the Mull of Kintyre will enable Vestas to supply not only the Scottish market, but also the rest of the UK and the Republic of Ireland to meet the steadily growing market for wind turbines there.
The Scottish Executive has announced that it will raise the target for the use of renewable energy in Scotland from the present 12% to around 18% by 2010. Much of this increase, driven by the Renewables Obligation (Scotland), is expected to be met by new wind farms, and Vestas will be well placed to compete for this new business using equipment manufactured and assembled in Scotland.
The European Regional Development Fund (ERDF) contribution of £3.6 million, from the Highlands and Islands Special Transitional Programme, represents a 40% grant intervention rate from the total eligible costs of £9 million. The project was dealt with through a fast tracking procedures designed to facilitate time critical projects.
News Release: SE1472/2001
19 Jun 2001