Japanese giant hands out another multi-million-pound deal for its power cable factory in Scotland

Japan-headquartered Sumitomo Electric Industries (SEI) has inked a second multi-million-pound contract for its new power cable factory in Nigg, Scotland, with THREE60 Energy, an Aberdeen-headquartered energy service company. This facility is perceived to be the first and only high-voltage cable manufacturing plant in the UK.

While the first deal is for the design and delivery of cable storage carousels, the secured contract with Sumitomo covers the supply of cable handling equipment for SEI’s power cable factory in Nigg. After the Highland Council greenlighted the planning permission a few months ago, a ceremony to mark the start of the facility’s construction phase was held on May 14 at the Port of Nigg, where the new subsea cable factory is being built, with commissioning expected in 2026.

Walter Thain, Group CEO of THREE60 Energy, commented: “We are thrilled to announce our second multi-million-pound contract with SEI, marking a significant milestone for both THREE60 Energy and the Scottish supply chain.

“Building on our existing partnership, this second contract award is a testament to the growing positive relationship between our companies. It is a clear indication of the trust and confidence that SEI has in THREE60’s capabilities within the Scottish supply chain and showcases our advanced cross-sector engineering capabilities.”

According to THREE60 Energy, its team has worked in tandem with the Japanese player, providing guidance and support during the development of the factory layout to map out the journey of the power cables from manufacture through to delivery, which is slated to start from Q2 2025.

Thanks to this, the Aberdeen-based business has designed a cable transportation system, which is said to maximize all available space to increase the site’s cable storage capacity. The full scope of supply entails gantry crane systems, cable tensioners, and indoor and outdoor cable path lines – the implementation of which allows cable transportation throughout the factory and to the external storage and testing facilities.

Furthermore, THREE60 underlines that the full scope of supply will be designed in its facilities in Glasgow and manufactured using the firm’s established supply chain, before being transported to the Port of Nigg for assembly and testing.

Since maximizing the use of the local supply chain and ease of transportation across Scotland is vital to both SEI and THREE60, the systems have a modular design to be transportable by road, ready for on-site assembly by the Aberdeen-firm’s team of engineers and technicians.

“The economic and employment benefits stemming from this collaboration will resonate throughout the region, as we continue to support local talent and contribute to Scotland’s thriving energy landscape, fostering a sustainable future for all,” concluded Thain.

Upon completion, the factory is anticipated to assist the UK in reaching its net zero target, contributing to critical electricity transmission infrastructure to connect and deliver renewable energy, such as offshore wind power, to UK consumers and beyond.

At the official ground-breaking ceremony for the cable manufacturing facility in Nigg, SSEN Transmission announced its selection of Sumitomo Electric and its cable installation partner, Van Oord, as the preferred bidders for the Shetland 2 high-voltage direct current (HVDC) link. This project is said to have enabled SEI to invest in the new manufacturing facility, which will deliver 100s of new skilled jobs in the Scottish Highlands.

THREE60 Energy is also working on oil and gas projects, as confirmed by recent deals with BW Offshore for engineering, procurement, construction, and commissioning (EPCC) services.