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Siemens Chooses UK for New Offshore Wind Turbine Manufacturing

|Includes: VAALCO Energy, Inc. (EGY)

Siemens (NYSE: SI) announced its intention to build a new factory for offshore wind turbines in the United Kingdom.

Siemens said its investment in the facility will be about 80 million pounds ($120 million), and it is expected to create approximately 700 wind jobs.

The manufacturing plant is expected to help Siemens meet future demand driven by the third round of offshore leasing to be held by the Crown Estate.

Britain's Chancellor of the Exchequer in the March 2010 Budget allocated fundingof 60 million pounds to a competition for land development, which prompted Siemens to choose the UK over sites in Germany and Denmark.

Andreas J. Goss, Siemens' chief executive in the UK, said: "The UK government has created a stable framework to attract inward investment in renewables and offshore wind power in particular. The competition for land development, announced in the Budget last week, gives us confidence that the appropriate UK port infrastructure can be made available to support our production plans."

The company said there is potential for expansion of the facility in the future.

Siemens is currently exploring a number of sites on the East Coast and in the North East and will make its decision about the exact location when the competition process for land development is complete.

Siemens is already investing in renewable skills development and research and development in renewable energy in the UK. The company has established a new Energy Sector training centre in Newcastle and has located its global Centre of Competence for offshore grid connections in Manchester. Siemens has also established R&D Centres of Excellence for wind power at Keele and Sheffield Universities.

Siemens competitor GE (NYSE: GE) on Friday announced plans to invest approximately EUR 340 million to develop or expand its offshore wind turbine manufacturing, engineering and service facilities in four European countries.


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