Sif gives green light for world’s largest monopile manufacturing plant

Dutch monopile foundation supplier Sif Holding N.V. (Sif) announced it has taken the Final Investment Decision (FID) to construct the world’s largest monopile foundation manufacturing plant in Rotterdam.

The plant will be built at the 62 hectare Maasvlakte 2 site in Rotterdam, the Netherlands, as an
extension of the existing facilities. Construction is set to start in April 2023. First manufacturing operations are scheduled to start in the second half of 2024, with full operations expected in the first half of 2025.

The upgraded manufacturing plant will significantly increase the total combined capacity of Sif to
500 kilotons a year and upgrade Sif’s capabilities to manufacture monopiles with diameters ranging from 9 meters up to 11.5 meters with a maximum output of approximately 200 XXXL monopile foundations per year, assuming a 11 meter diameter, 2,500-ton reference monopile.

At the same time, Sif’s CO2 footprint per kiloton produced will decrease, as the new factory will consume less gas per kiloton and will only use green electricity, generated by the on-site wind turbine, Sif says. The manufacturing plant will also involve higher electrification of production and transport equipment and processes.

With a roll-on-roll-off quay and 650-meter deep sea quayside with direct sea-access, the plant is strategically positioned to accommodate all next generation installation vessels required for the largest and heaviest monopile foundations on a 24/7 basis, making it an attractive load out and marshalling location for offshore wind.


Sif states that the expansion will require an investment of approximately €328 million. A solid financing plan for the expansion facility has been committed through a combination of €100 million advanced factory payments from the launching customers, €50 million preferred equity from Equinor, €50 million common equity to be raised through a rights offering, which is fully underwritten by the Sif’s largest shareholder Egeria (through Grachtenheer 10 B.V.) at €11.50 per share, €40 million in operational leases and €81 million of term loans to be provided by Invest-NL and a consortium of commercial banks, with the remainder being funded through cash and cash equivalents.

FID is subject to various customary conditions and to the granting of an irrevocable building permit (‘Omgevingsvergunning voor de activiteit bouwen’). All relevant procedures are on schedule for the start of the construction activities.

Launching customers

Once the expanded manufacturing plant is fully ramped-up, Sif projects EBITDA of €135 million in 2025 and of at least €160 million per annum from 2026 onwards. This results in a payback period of 3-4 years, the company states.

Sif already has two launching customers, one of them being Ecowende (a joint venture of Shell and Eneco), together have committed to 348 kilotons of production (booked or in exclusive negotiation) bringing the present total orderbook to 662 kilotons. A long-term capacity reservation framework agreement with Equinor is in place while a second long-term capacity reservation framework agreement is currently being negotiated.

“By constructing the world’s largest monopile foundation manufacturing plant and by implementing
next level integrated manufacturing technology with second to none process and quality controls,
Sif will live up to its vision and take a pivotal step in securing its next phase of growth. As a result of
this investment, we will strengthen our absolute global leadership position as monopile foundations
solutions provider, enhance our innovative skills and create long term value for all our stakeholders
with a clear growth path in an accelerating global offshore wind market. An important basis for the
plan is the responsibility taken for safety and sustainability in building the facility as well as the
design and operation of the production process.”

Fred van Beers, CEO of Sif

Capital Markets Day

On Friday 17 March 2023, Sif will host a Capital Markets Day during which further details of the investment and anticipated market developments will be shared by members of the executive board.

Sif’s Roermond plant will manufacture primary steel for transition pieces and top sections of monopile
foundations up to a maximum diameter of 9 meters. The top sections manufactured in the Roermond
facility will be combined with bottom sections in Rotterdam. Source: Sif

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