The government has today (Wednesday 11 December) reached an agreement in principle with wind turbine manufacturer Vestas to repurpose its wind blade factory on the Isle of Wight, saving 300 jobs.

Energy Secretary Ed Miliband said a collaborative approach between the company and the government means a site that was almost certain to close would now have a future, offering highly skilled jobs and giving the UK a vital new industrial capability.

The proposed plans for the factory have been made possible in part because of the lifting of the ban on onshore wind – as part of our Plan for Change to make Britain a clean energy superpower – creating a growing supply chain in the UK and making the site viable for the longer term.

The company’s factory in Newport, which has been on the island for more than twenty years, currently produces offshore wind turbine blades, employing 600 people.

In that time the technology for offshore wind has evolved, with ever-bigger blades needed for the new turbines producing ever more clean power.

Demand for the product currently manufactured at the site is coming to an end and logistical constraints means it cannot produce the next generation of offshore blades, so the company had indicated the factory was at risk of closure.

The government considers blade manufacturing essential for its clean power mission and intervened to negotiate with the company in recent weeks.

The agreement in principle between the government and Vestas means the site will be repurposed to make wind blades for onshore wind turbines, offering protection for 300 jobs. With the ban on onshore wind lifted, increased demand for onshore turbines could lead to additional jobs across the industry in future.

This represents a new way of dealing with businesses in the interest of the country – using the might of government to solve problems rather than create them. It is the same approach which has led to over £60 billion investment since July.

Energy Secretary Ed Miliband said:  

My thoughts today are with the staff at Vestas who are facing uncertainty about the future of their jobs, especially at this time of year. 

I am, however, pleased that we have reached this agreement in principle with the company to save 300 jobs on the site, and that our lifting of the ban on onshore wind farms is helping make a site earmarked for closure viable for the future.

This agreement in principle will now need to be followed up by the formal due diligence process. But the action we are taking is designed to secure work at one of the Isle of Wight’s largest employers, and give the UK a vital new industrial capability for our clean energy future.

Notes to editors 

This agreement in principle follows the launch of the government’s Plan for Change to deliver a decade of renewal and make Britain a clean energy superpower. 

This agreement in principle is subject to necessary approvals and due diligence processes.
 
Vestas’ update highlights how they recognise the opportunities for clean growth and renewables in the UK thanks to the government’s mission to become a clean energy superpower. 
 
The government has started the most significant investment programme in homegrown British energy through its clean power by 2030 mission – unlocking thousands of jobs and driving investment into UK communities. As well as lifting the ban on onshore wind in England, the government has also:  

• delivered a record number of clean energy projects through its renewables auction, securing enough clean power to supply the equivalent of 11 million homes   
• approved unprecedented amounts of nationally significant solar – 2GW – more than the last 14 years combined    
• launched Great British Energy  

The Clean Industry Bonus will create the conditions for cleaner energy industries to thrive in the UK and elsewhere, providing a provisional £27 million per gigawatt of offshore wind projects. That means if between 7 to 8GW of offshore wind apply, the budget could go up to £200 million. 

The government has created the National Wealth Fund to catalyse over £70 billion of private investment, and set out plans for a modern Industrial Strategy to support investment in growth-driving sectors.

The government’s recent record-breaking International Investment Summit secured £63 billion and nearly 38,000 jobs, more than double the £29.5 billion committed at last year’s Global Investment Summit and spans partnerships across the infrastructure and tech sector.