UK says Chinese wind turbine maker poses national security threat
Ming Yang’s plans to build Scottish factory thwarted
The UK government has said that Chinese turbine maker Ming Yang’s products pose a national security risk and it could not support their use in UK offshore projects.
Ministers said on Wednesday that while they welcomed investment from China, “we will always protect our national security”.
“After careful consideration, the government has concluded that there are national security risks associated with this and this is what we are saying to offshore wind developers,” a person familiar with the matter added.
“These are sensitive issues: the government’s view has been informed by the highest level of national security.”
Ming Yang is privately owned and listed on the Shanghai shock exchange but critics have raised concerns about the Chinese government’s potential interference in private companies, as well as the risks that European industry will get further hollowed out by competition from China.
The government’s statement follows months of deliberation and is likely to spark fierce debate about Britain’s openness to Chinese investment, as well as whether it is adding to the costs of green energy by blocking competition.
Ming Yang had set out plans in October to invest up to £1.5bn in a factory to produce turbine blades and other parts for the UK, Europe and other markets.
Ming Yang said it was “disappointed” with the government’s decision “not to allow Ming Yang’s world-leading technology” to be used, adding it would continue to engage with the UK government and could revive its plans if policy changed.
Wednesday’s decision follows concerns raised by the Trump administration over the plans, as well as criticism from some MPs.
The UK and Scottish government have held talks with Danish turbine maker Vestas about co-investing to build a new factory in Scotland, according to an announcement this morning from Vestas.
Vestas said it planned to push ahead with the factory if it wins enough orders for UK wind farms, adding that it could be up and running by 2029, creating up to 500 direct skilled jobs.
Ed Miliband, UK energy secretary, said the government’s “clean energy mission is delivering good industrial jobs for Scottish workers — boosting growth”.
The Scottish government has been supportive of Ming Yang’s potential investment into the Highland port of Ardersier, which would have helped develop a local supply chain for the offshore wind industry and create much-needed jobs in a region blighted by the decline of the North Sea oil industry.
Octopus Energy, Britain’s largest household energy supplier, had called for the UK to embrace Chinese energy technology and in September announced a partnership with Ming Yang including plans to deploy its turbines in the UK with the “highest levels of data protection and cyber security”.
Zoisa North-Bond, Octopus’s head of energy generation, argued in January that greater competition could cut wind farm development costs by almost a third.
Ming Yang, which also trades global depositary receipts in London alongside its main Shanghai listing, is one of the world’s largest wind turbine makers and employs more than 25,000 people around the world.