Chinese company Mingyang is investing up to £1.5bn in a Scottish turbine factory

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One of China’s largest turbine manufacturers has announced plans to invest up to £1.5bn in a new factory in Scotland, testing the UK government’s appetite for investment from Chinese companies.

The privately owned company, based in Guangdong, said it wants to build a factory to provide services abroad winds Projects in the UK, Europe and some other markets, its preferred location being the Port of Ardersier near Inverness.

The announcement marks the first time Ming Yang has spoken publicly in detail about the plans, following what he described as “extensive discussions” with the UK and Scottish governments over the past two years.

The company confirmed on Friday that the plans are “subject to final approvals from the UK government”, which has come under pressure from some MPs and US officials to reject the proposed investment over concerns about China’s involvement in critical national infrastructure.

Although Mingyang is not state-owned, critics say there is a risk of Beijing interfering in the decision-making process of private companies and worry about over-reliance on China. China In broader supply chains.

The move comes as the UK government’s relationship with China comes under scrutiny amid questions about its role in the crisis It collapses The trial of two men accused of spying on Westminster parliamentarians for China.

In June, Financial Times I mentioned The Trump administration raised concerns with the United Kingdom about what it said were national security risks associated with allowing Ming Yang to build a factory in Britain.

But the government also wants to strengthen supply chains to help achieve its clean energy goals, including its goal of decarbonizing the energy sector by 2030.

Ming Yang said the first phase of its planned factory could go into production by late 2028. The company is listed in Shanghai and trades global depositary receipts in London.

A government official said a decision on whether to allow Mingyang to proceed with the plant was “imminent.”

In September, Ming Yang announced a partnership with Octopus Energy, the UK’s largest domestic energy supplier, whose chief executive, Greg Jackson, serves as a non-executive director on the UK government’s Cabinet Office board.

In addition to government approval, Mingyang is seeking some joint investments in 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 clean energy leader”.

Given supply chain constraints across Europe, Mingyang’s capability is seen by many as essential to unlocking the full potential of Scotland’s offshore wind sector, particularly the emerging 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 was awaiting UK approval for the factory, including approval from the security services. review On the implications of introducing advanced Chinese technology into energy infrastructure.

One person familiar with the discussions said there had “clearly” been a delay in the process.

“Patience is a limited resource, and a lot of investments and jobs are waiting for this decision,” this person said.

Last year, Kate Forbes, the Deputy First Minister, said there was “room” Mingyang has decided to open a factory in Scotland, given its ambitions for a “massive” transition to renewable energy sources.

The source added that the Scottish Government had “no reason” to have a problem with Ming Yang, but any investment would require UK approval.

Scotland, which operates about 3 GW of offshore wind, has a potential pipeline of an additional 40 GW, including about 25 GW of floating capacity.

A UK Government spokesman said: “This is one of a number of companies that wish to invest in the UK. Any decisions taken will be consistent with our national security.”

The Scottish Government said it looked forward to the UK’s decision on Ming Yang’s potential investment in the “strategically important” port of Ardersier.