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One of China’s largest turbine makers has announced plans to invest up to £1.5bn in a new factory in Scotland, setting up a test of the UK government’s appetite for investment from Chinese companies.
The privately owned company, based in Guangdong, said it wanted to build a factory to serve offshore wind projects in the UK, Europe and some other markets, with its preferred location being Ardersier Port near Inverness.
The announcement marks the first time Ming Yang has spoken publicly in detail about the plans, following what it described as “extensive discussions” with the UK and Scottish governments over the past two years.
The company on Friday confirmed the plans were “subject to final approvals from the UK government”, which has come under pressure from some MPs and US officials to reject the proposed investment due to concerns about China’s involvement in critical national infrastructure.
While Ming Yang is not state-owned, critics argue there is a risk of interference from Beijing in private companies’ decision-making and are concerned about over-reliance on China in supply chains more widely.
The move comes as the UK government’s relationship with China is under scrutiny amid questions over its role in the collapse of the prosecution of two men accused of spying on parliamentarians at Westminster on behalf of China.
In June, the Financial Times reported that the Trump administration had raised concerns with the UK over what it argued were national security risks attached to allowing Ming Yang to build a plant in Britain.
But the government also wants to boost supply chains to help meet its clean energy goals, including its target to decarbonise the power sector by 2030.
Ming Yang said the first phase of its planned factory could be in production by late 2028. The company is listed in Shanghai and trades global depositary receipts in London.
One government official said a decision on whether to allow Ming Yang to go ahead with the factory was “imminent”.
In September, Ming Yang announced a partnership with Octopus Energy, the UK’s largest household energy supplier, whose chief executive, Greg Jackson, is a non-executive director on the UK government’s cabinet office board.
As well as government approval, Ming Yang is seeking some co-investment for the site. It said it had held “detailed commercial discussions” with entities including the UK’s state-owned Great British Energy, which was set up by the current government to help Britain become a “global leader in clean energy”.
Given supply chain constraints across Europe, many regard Ming Yang’s capacity as necessary to unlock the full potential of Scotland’s offshore wind sector, especially nascent floating wind technology. Ming Yang said the project could create up to 1,500 jobs in its initial phase.
The Scottish government’s industrial strategy has identified floating wind as a sector providing a “first-mover advantage”. But it has been waiting for UK approval for the factory, including the security services’ review into the implications of introducing advanced Chinese technology into energy infrastructure.
One person familiar with the discussions said there had “clearly” been a delay in that process.
“Patience is a finite resource — lots of investment and jobs await this decision,” the person said.
Last year, Kate Forbes, deputy first minister, said there was “room” for Ming Yang to open a factory in Scotland, given ambitions for an “enormous” transition to renewables.
The Scottish government had “no reason” to have an issue with Ming Yang but any investment would require UK approval, the person added.
Scotland, which operates about 3 gigawatts of offshore wind, has a potential pipeline of a further 40GW, including about 25GW of floating capacity.
A UK government spokesperson said: “This is one of a number of companies that wants to invest in the UK. Any decisions made will be consistent with our national security.”
The Scottish government did not immediately respond to a request for comment.
