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Sumitomo Electric opens £350 million UK subsea cable factory to support offshore wind and grid expansion. 21 October 2026 Estimated reading time: 5 minutes Sumitomo Electric Industries has officially opened the United Kingdom's first high voltage direct current (HVDC) subsea cable manufacturing facility at the Port of Nigg in Scotland, marking a £350 million investment aimed at expanding domestic cable production, supporting offshore wind development and strengthening electricity transmission infrastructure. The opening ceremony, held on October 19, 2026, establishes a new manufacturing base in the Scottish Highlands at a time when Britain is preparing major investments in offshore transmission networks and renewable energy connections. The factory will manufacture 525 kV cross linked polyethylene (XLPE) HVDC subsea transmission cables and subsea inter array cables, providing equipment required for offshore wind farms, electricity interconnectors and long distance power transmission. New manufacturing capacity at the Port of Nigg. The facility occupies a 15 hectare site within the Inverness and Cromarty Firth Green Freeport, with approximately 58,000 square metres of manufacturing floor space. Its location at the Port of Nigg provides access to established maritime infrastructure in a region already supporting offshore energy construction and logistics operations. For the project cargo and maritime sectors, the investment introduces another industrial manufacturing facility requiring specialist transport, heavy handling equipment, cable storage and marine logistics services. Subsea transmission cables are particularly demanding cargoes. Their weight, dimensions and minimum bending radius require specialised handling systems, while offshore installation projects depend on coordinated manufacturing schedules, port availability and cable laying vessels. Producing these cables in Scotland could reduce reliance on overseas manufacturing for selected UK transmission projects, although the company has not disclosed the factory's annual production capacity. The facility is expected to create more than 200 direct skilled jobs and support over 400 jobs across the wider UK supply chain. Workforce development includes operator training in Japan and a programme designed to transfer technical knowledge to locally recruited employees. £350 million investment supports UK electricity infrastructure. The factory forms part of a broader effort to expand electricity transmission capacity as offshore wind generation increases around the British coastline. HVDC technology allows large quantities of electricity to travel long distances with relatively low transmission losses, making it particularly suitable for offshore wind connections and subsea interconnectors. The practical challenge is straightforward: generating more offshore electricity provides limited benefit unless transmission networks can deliver that power to consumers and industrial users. Osamu Inoue, President of Sumitomo Electric, said the facility would support Britain's electricity infrastructure and renewable energy development. "This factory will serve as a vital production base supporting the strengthening of the UK's transmission infrastructure, the expansion of renewable energy deployment, and the delivery of a stable and reliable energy supply for generations to come." The project was first announced in April 2023, with construction beginning following a groundbreaking ceremony in May 2024. Scottish government backs industrial investment. The Scottish Government contributed £24.5 million towards construction of the factory, while the wider Green Freeport initiative has received £25 million in UK Government seed funding. Factory Tour John Swinney, Scotland's First Minister, described the development as an investment in the region's manufacturing capabilities and skilled workforce. "This facility puts Scotland right at the heart of the energy transition and is a strong vote of confidence in our people, skills and engineering excellence." Douglas Alexander, Secretary of State for Scotland, highlighted the importance of combining port infrastructure, engineering expertise and industrial investment. The facility also reflects government efforts to establish more domestic manufacturing capacity for equipment needed to expand Britain's electricity network. Transmission projects provide demand for subsea cables. Major transmission developers have already identified projects that could benefit from the new manufacturing capacity. SSEN Transmission said its proposed Shetland 2 subsea cable project had helped provide an initial commercial foundation for the investment. Managing Director Rob McDonald said the company planned to invest approximately £29 billion over the next five years. He said further investment in manufacturing would depend partly on greater certainty around electricity network development, planning decisions and long term renewable energy policy. Meanwhile, National Grid has awarded Sumitomo Electric a contract to supply HVDC cable for its Sea Link project. The electricity network operator said it had established more than £28 billion in UK supply chain contracts to support future infrastructure development. Carl Trowell, National Grid's Executive President of Global Capital, said the new factory demonstrated how long term infrastructure investment could support domestic manufacturing. New opportunities for cable logistics and offshore installation. The Port of Nigg facility adds a manufacturing element to Scotland's existing offshore energy supply chain, potentially increasing demand for specialist logistics services linked to cable production and installation. HVDC subsea cable projects typically involve large cable drums, dedicated handling equipment, specialised transport arrangements and complex vessel loading operations. The logistics requirements can extend from factory production and testing through storage, quayside handling, marine transport and offshore installation. For ports and project freight operators, manufacturing schedules and installation vessel availability remain important factors in determining how efficiently these operations can be organised. Sumitomo Electric has not announced specific arrangements for cable loading, storage capacity or maritime transport services associated with the new plant. The company said it intends to use the Scottish facility to support offshore wind and interconnector projects across Europe, extending its existing subsea cable manufacturing and engineering activities. DISCLAIMER: "Breakbulk.News publishes editorial content, including news, features and press releases supplied by third-party companies, institutions and PR agencies. Third parties who submit material to us are solely responsible for ensuring that all text, images, logos and other content they provide are accurate and that they hold all necessary rights, licences and permissions for news use. By submitting content to Breakbulk.News, contributors represent and warrant that their material does not infringe the rights (including copyright and related rights) of any third party and agree to indemnify Breakbulk.News respecting any claims arising from their submissions. human-edited, AI-assist. 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Sumitomo Electric opens UK's first HVDC subsea cable factory. October 20, 2026 Sumitomo Electric Industries has officially opened the UK's first High-Voltage Direct Current (HVDC) subsea cable manufacturing plant at the Port of Nigg in the Scottish Highlands. The £350 million flagship facility establishes local industrial capability to resolve grid bottlenecks and deliver offshore wind power directly to areas of high demand. Establishing national cable manufacturing capability. Sumitomo Electric Industries. has officially opened the UK's first HVDC subsea cable factory at the Port of Nigg in Scotland. Representing a £350 million direct investment in the Highlands economy, the 58,000-square-metre facility occupies a 15-hectare site within the Inverness and Cromarty Firth Green Freeport. HVDC subsea cables function as subsea electricity superhighways, carrying bulk renewable power efficiently over long distances. Operating as the UK's premier production base, the state-of-the-art plant will manufacture 525kV XLPE HVDC subsea transmission cables and subsea inter-array cables to link offshore wind fields directly with high-demand population centres. Economic impact and local workforce upskilling. The opening reinforces Scotland's position as a destination for inward investment and advanced renewable manufacturing. Supported by £24.5 million in Scottish Government construction funding and £25 million in UK Government Green Freeport seed funding, the project establishes direct industrial capacity in the Highlands. * 200+ High-Skilled Direct Jobs: Created locally at the Port of Nigg manufacturing site. * 400+ Total Jobs: Projected across the broader UK supply chain network. * Train-the-Trainer Model: Knowledge transfer delivered through specialized operator training programmes conducted in Japan. Resolving grid infrastructure bottlenecks. Connecting offshore wind resources to inland electrical grids remains one of the largest operational challenges facing the UK's energy transition. Domestically produced subsea transmission lines tackle the severe supply chain shortages that currently delay renewable deployment. Anchor contracts are already supporting this strategic infrastructure pipeline: Strategic playbook for infrastructure leaders. The launch of the Port of Nigg plant offers three critical insights for enterprise decision-makers navigating large-scale infrastructure investments: Anchor infrastructure through public-private co-investment. Blending regional enterprise funding, freeport tax incentives, and private capital creates stable conditions for multi-hundred-million-pound capital projects. Build resilient domestic supply chains. Transitioning away from total reliance on international supply chains mitigates global shipping delays, shortens project lead times, and ensures regulatory compliance. Leverage long-term capital certainty. Substantial energy grid investments, such as SSEN Transmission's £29bn five-year plan, provide the long-term commercial visibility required for major global manufacturers to establish localized production hubs. Rob McDonald, Managing Director of SSEN Transmission, said: "The opening of Sumitomo Electric's new cable manufacturing facility is a landmark moment. Not only for Scotland's energy transition but for its economy too, And, we're proud of the role our proposed Shetland 2 subsea cable project played as an anchor for this investment." Barnsley launches two AI schemes to upskill jobseekers and create paid business placements. Discover how this UK pilot is shaping future workforce talent. High-performance expert Jim Steele outlines how B2B leaders can unlock potential, manage pressure, and build adaptive sales teams. The latest SMMT vehicle data shows rising van and car registrations, but slumping electric van sales prove that manufacturer discounts aren't enough to secure the transition. - Advertisment - Featured. Test your knowledge with its 3-question sales leadership quiz. Based on the State of Sales 2026 report, discover the "Reality Gap" in AI and secure your NSC Early Bird discount.