Two European firms have acquired the assets of Tees Alliance Group Corporate and announced plans to establish an offshore fabrication business on the former site of parent firm, TAG Energy Solutions.
Denmark’s Bladt Industries and Germany’s EEW SPC will launch a joint venture to manufacture steel structures for the offshore industry.
The deal is undisclosed, although Bladt and EEW SPC anticipate investment of between £25m to £35m, including the acquisition and development of facilities.
The move, which was revealed by the Prime Minister on a visit to Wales at the UK Investment Summit 2014, is initially expected to create around 100 jobs.
The new venture, Offshore Structures (Britain), will develop 17 hectares (42 acres) of land to include more than 13,000 square meters of steel manufacturing facilities under roof and 2,000 square meters of blasting and painting facilities.
A statement from Bladt said the facilities were particularly well suited to the production of large tubular offshore wind foundations.
The firm’s chief executive officer, Jan Kjærsgaard, said the venture would bring more than 10 years of offshore wind experience to bear in the UK.
George Rafferty, chief executive of NOF Energy, said: “This deal represents a positive endorsement of the skills and experience of the North East workforce and supply chain.
“With the support of operators, contractors and governments, UK suppliers and in particular those in the North East, have a key role to play in the offshore renewables industry, which is an essential sector if this country is to achieve a balanced energy future.”
Stephen Catchpole, managing director of Tees Valley Unlimited, the Local Enterprise Partnership for Tees Valley, said: “The renewable energy sector is one in which Tees Valley has a strong foothold and this is reflected in the news that TAG Energy Solutions has been acquired by EEW SPC and Bladt Industries.
“Offshore wind is vital to the delivery of a balanced energy mix for the UK and it is important that Tees Valley sustains and expands its capabilities in this field.
“We are meeting the new owners to discuss their plans and see how TVU can help to maintain jobs and skills in Tees Valley and aid the company in its growth plans.”
TAG Energy Solutions was revealed to be in administration in October, but it is understood the offshore manufacturer had been closed for some time prior to that.
At the time, chief executive officer Stuart Oakley told The Journal he had been forced to lay-off the firm’s workforce in September due to lack of work.