Sif delays manufacturing expansion investment decision; forms Korean partnership

Sif made significant progress in determining whether it would be feasible to increase production capacity and manufacturing capabilities for offshore wind foundations.

During the more than 20 years that Sif has been in the manufacturing business, the diameter of monopile foundations for offshore wind farms has more than tripled to 9 meters. Furthermore, with growing ambitions for offshore wind capacity based on strong political support, it is still clear that there is a need to increase the production capacity for foundations, both in terms of size and quantity.

In order to reach firm contracts this summer, productive and exclusive discussions with clients for a total of 400kton launching capacity are currently under way. A longer period is needed before a final investment decision can be made because of these discussions with clients and other important parties, the uncertainties brought on by the global economic and geopolitical situation, and other factors. As a result, the business chose to reschedule the FID, which was originally planned for July of this year

Korean partnership

Sif is continuing its discussions with potential partners for local production outlets for foundations in Asia and the USA while also developing expansion plans for the European market. Sif Holding NV and GS Entec Corp from Ulsan, Republic of Korea, have now signed a Framework Agreement for a Strategic Partnership for monopile foundation projects in the Asian region, under which Sif intends to grant GS a 10-year mutually exclusive license to use technology developed and applied by Sif for the Asian region in order to manufacture monopile foundations and transition pieces.

The licensed technology relates to the conversion of GS’s current manufacturing facilities in Ulsan into a manufacturing plant for monopile foundation and transition pieces, with the option to later develop a new manufacturing facility for these items somewhere else in Korea. Both a fixed one-time license fee and a variable fee per manufactured and delivered monopile foundation are included in the license.

Image source: Sif

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