Galliford Try has won a contract to deliver a £65m subsea cable factory in Blyth, Northumberland.
The project, awarded by JDR Cable Systems, will see the creation of a 46,000-square metre facility.
JDR said the new factory, designed by architectural practice Vincent and Gorbing, would help to expand its product portfolio and support the growth of the offshore renewable-energy market.
The Edinburgh-based business is known for designing, engineering and manufacturing subsea power cables that are used on oil and gas rigs and wind farms. The business is now looking to add high-voltage export and long-length array cables to its portfolio.
Commenting on the deal, Galliford Try chief executive Bill Hocking said: “[This contract] adds to our excellent portfolio of work in the North East, and also helps the UK towards energy security and its net-zero carbon targets.”
James Young, chief strategy and compliance officer at JDR, said: “The appointment of Galliford Try and the start of construction represents a major milestone in the realisation of our new high-voltage subsea-cable manufacturing facility.
“[The facility will] bring new power-cable capabilities and capacity to the UK, which in turn will help to secure our energy supply, and connect more renewable energy to power our homes and cities.”
The build was backed by the government through the Offshore Wind Manufacturing Investment Scheme. Commenting on the project in June, then-business and energy secretary Kwasi Kwarteng said: “Investments such as this from JDR, with government backing, are exactly the kind which our British energy security strategy will attract, while reducing our exposure to volatile global gas prices.”
Galliford Try has previously delivered other manufacturing facilities in the region, including a factory expansion for food-production giant Quorn.