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Sumitomo Electric leverages its global power to drive Scotland’s energy transition

Last updated: January 2025

Japanese company, Sumitomo Electric Industries (SEI), is scaling innovation in Scotland’s soaring energy transition sector with a record-breaking £350 million inward investment.

Supporting the world's green energy future from Scotland 

“Do your sincere best in not only business, but also in every aspect of your life.”

This corporate philosophy of Sumitomo Electric Industries (SEI) shined bright when it invested in one of Scotland’s largest energy transition programmes.  

The Japanese corporation’s “Sumitomo Spirit” of principles mirrors Scotland’s own business values, which foster inclusive growth, wellbeing, sustainability, net zero, and good governance.

SEI is part of a world leading trading company, with net assets of £13.5 billion, employing 293,000 people globally.  

And it means business in Scotland. Big business. 

SEI's Groundbreaking Ceremony was attended by the Scottish Government’s Cabinet Secretary for Net Zero, Màiri McAllan

  • SEI - part of a global trading corporation

    to help drive Scotland's mission to create an internationally competitive energy transition industry by 2034. 

  • Sky-high demand for green energy

    will support Scotland’s 45GW of offshore wind projects pipelined over 30 years and its net zero targets.

  • Corporation employs 293,000

    with £13.5 billion in net assets, in 40 countries, investing £700 million in Research and Development (R&D). 

SEI won a tender for the project, which went live in 2019, as an interconnector between the UK and Belgium to enter the European market.

In February 2024, SEI secured funding from the Scottish public sector (including our domestic arm, Scottish Enterprise) to establish a major hub in the Scottish Highlands. The £350 million facility will manufacture and supply high voltage cables for the booming offshore wind energy sector. 

Importantly, the investment will support Scotland’s ambitions to achieve an internationally competitive energy transition industry by 2034, with a target to be fully net zero by 2045.

Scottish Development International’s (SDI) relationship with SEI began in early 2020. Our Inward Investment Specialists in Japan had already developed a relationship with the company since the 2010s.

Scotland: a top 10 nation in offshore wind 

Mike Engelbrecht, Vice President of Sumitomo Electric UK Power Cables Ltd, says: “We looked at our strategy for the western hemisphere. There was significant development opportunity in the North Sea’s offshore energy sector. Scotland was in pole position, which allowed us to be closer to the UK’s and Europe's rapidly expanding renewable energy industry.”   

Scotland’s offshore wind energy sector is full of potential for global investors: it’s recognised as a global top 10 nation in this industry, with a projected 45GW pipeline over 30 years. The nation is at the forefront of innovative renewable energy technologies. These include the world’s first deep water wind project and the first floating wind farm.  

Winds of change: the £350 million investment is testament to Scotland's energy transition mission

Realising vision with Team Scotland 

For SEI, site selection criteria were vital, especially in having access to deep water and suitable infrastructure.

Helping the corporation to realise its vision was SDI’s International Inward Investment Specialist in Japan, Chotaro Horiuchi. He led a team of dedicated professionals, including independent consultant, Stephen Baker and Team Scotland partners.  

Chotaro says: “SDI worked closely with SEI and our partners, Scottish Enterprise and Highlands and Islands Enterprise (HIE) to identify potential locations. After a comprehensive site survey, we found a location that was ideal for the facility. This close collaboration helped to ensure the project could progress without delays.”

Highland Council approved a planning application for a 57,500 square metre factory on a 15-hectare site close to the Port of Nigg yard in Easter Ross. This will include offices, a warehouse and external laydown areas. The site is located within the designated Inverness and Cromarty Firth Green Freeport boundary, a key factor in the company’s decision to invest in the Scottish Highlands.

Cabinet Secretary, Mairi McAllan and Osamu Inone, President of SEI, at the build site

Blowing a fair wind of opportunity 

A collaborative approach, with cross-partner funding, have blown a wind of success for the project. Again, this reflects a key business principle of the Sumitomo Spirit: “being worthy of the trust of others.”

Public sector funding has included £24.5 million to secure the project, broken down into £19.37 million from the Scottish Government, £4.6 million from HIE and £530,000 from Scottish Enterprise.

In addition to the funding, ScotWind has been instrumental in getting the programme off the ground. ScotWind is an offshore wind leasing round, managed by Crown Estate Scotland. For investors interested in Scottish energy transition, ScotWind leasing offers significant opportunities for developers, Tier 1 manufacturers and across industry supply chains. 

SDI worked collaboratively with Sumitomo early on, engaging ScotWind developers to ensure they were part of discussions. This cohesive approach enabled the company to hear directly from developers on the importance of producing cables locally. 

For SDI, it was clear that aligning with Sumitomo Electric’s broader vision was key to moving forward together, and to secure the backing of the corporation’s senior leadership. Such a strategy has been fundamental to SEI’s ethos of: “placing importance on integrity and sound management.”

Investing in Scotland was also a strategic move for the corporation to capture a soaring demand for cables in UK and European markets. This will help strengthen Scotland’s targets to become a leader in net zero.

 

Sumitomo Electric’s investment in Scotland will ramp up its high voltage cable production. Currently, there are extended lead times for the supply of these essential cables.

The new factory will help reduce those lead times and strengthen vital renewable energy security. 

Today, SEI remains committed to the project with construction of the subsea cable manufacturing facility well underway. Scotland has positioned itself not just as a local supplier but as a key partner in global energy transition. This will ensure the company’s presence in Scotland will contribute to long-term renewable energy and sustainable development. 

A bright future for energy transition in Scotland

A shared vision of sustainability and innovation 

In May 2024, Sumitomo Electric Power Cables Ltd held a facility groundbreaking ceremony, attended by the Scottish Government’s Cabinet Secretary for Net Zero and Energy, Màiri McAllan. 

Stefan Bengtsson, SDI Director of Inward Investment for Asia-Pacific, says: “I’m delighted to witness the profound impact of Sumitomo Electric Industries’ investment in Scotland’s energy transition sector. This £350 million commitment represents more than just economic investment. It embodies a shared vision of sustainability, innovation and integrity that resonates deeply with Scotland’s own values." 

But this is not where the story ends. It’s the start of an exciting new chapter in a supply chain to drive the green energy revolution. 

A bright future is in sight. Sumitomo Electric and Scotland are scaling innovation and growth across a booming renewables sector that will support the world's energy transition. 

Stefan sums up: "The Sumitomo Spirit aligns seamlessly with our mission to drive inclusive growth and a net zero future."

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