XLCC: Secures £20m Investment for Ayrshire Facility
Deal News | Nov 28, 2024 | Scottish National Investment Bank Plc
The Scottish National Investment Bank has announced a £20 million investment in XLCC to support the development of a new manufacturing facility in Ayrshire for subsea cables. This facility will specialize in producing High-Voltage Direct Current (HVDC) cables that are essential for transporting electricity over long distances, and it is expected to generate 900 jobs, including 200 apprenticeships. The investment aligns with the bank's mission to promote a sustainable economy and supports the Scottish Government's broader strategy to invest £500 million into the offshore wind supply chain. The project not only aims to boost local employment but also plays a critical role in meeting the future demand for subsea cables, anticipated to be 250% of current supply by 2030. Additionally, the National Wealth Fund has also reinforced support with an initial £20 million and the potential for a further £67 million investment.
Sectors
- Renewable Energy
- Manufacturing
- Investment Banking
Geography
- Scotland – The core investment and development activities revolve around Ayrshire, Scotland, with strategic importance to the Scottish Government's renewable energy goals.
Industry
- Renewable Energy – The project involves the development of infrastructure to support renewable energy, specifically the manufacturing of subsea cables essential for electricity transport in offshore wind energy projects.
- Manufacturing – The article discusses the establishment of a new manufacturing facility for the production of HVDC cables, supporting the industrial and manufacturing sector.
- Investment Banking – The Scottish National Investment Bank's role in providing financing underscores its involvement in the investment banking sector.
Financials
- £20 million – Investment amount by Scottish National Investment Bank into XLCC
- £20 million – Initial investment by the National Wealth Fund with an option for a further £67 million
- £500 million – Scottish Government's investment commitment over five years for offshore wind supply chain
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Scottish National Investment Bank Plc | Investor | PE | Scotland's development bank providing mission-led investments to support sustainable economic growth. |
| XLCC | Target Company | Company | A manufacturer of high-voltage direct current subsea cables, integral to energy transition and offshore wind energy projects. |
| National Wealth Fund (NWF) | Co-Investor | Government | Contributing to the financing of XLCC's project under its strategy to support Scotland's renewable energy infrastructure. |
| Scottish Government | Supporter | Government | Strategically investing to anchor Scotland’s offshore wind supply chain and promote economic development. |