Sif Holding has taken a final investment decision on a €328M (US$352M) plan to build the world’s largest monopile foundation manufacturing plant
Construction of the new facility, at the Maasvlakte 2 site in Rotterdam, the Netherlands, is expected to start April 2023, enabling the company to meet fast-growing demand for monopiles for the global offshore wind industry.
The upgraded plant will significantly increase the combined capacity of Sif’s manufacturing facilities to 500,000 tonnes a year and enable the company to manufacture the equivalent of 200 XXXL, 11-m diameter, 2,500-tonne reference monopile foundations a year.
Once the expanded manufacturing plant is fully operational – which is expected in the first half of 2025 – the company projects EBITDA of €135M in 2025 and of at least €160M per annum from 2026 onwards. This will result in a payback period for the new facility of 3-4 years.
Two launch customers for the new facility, Ecowende, the joint venture of Shell and Eneco, have committed to 348,000 tonnes of production (booked or in exclusive negotiation), bringing the company’s total orderbook to 662,000 tonnes.
A long-term capacity reservation framework agreement with Equinor is in place and a second long-term capacity reservation framework agreement is currently being negotiated.
A financing plan for the new facility has been committed through a combination of €100M advanced payments from the launch customers, €50M preferred equity from Equinor, €50M common equity to be raised through a rights offering, underwritten by the company’s largest shareholder Egeria, €40M in operational leases and €81M in loans to be provided by Invest-NL and a consortium of commercial banks. The remainder will be funded through cash and cash equivalents.
Sif chief executive Fred van Beers said, “By constructing the world’s largest monopile foundation manufacturing plant and implementing next-level integrated manufacturing technology and quality control, Sif will take a pivotal step in securing its next phase of growth.
“As a result of this investment, we will strengthen our global leadership position as a monopile foundation solutions provider, enhance our skills and create long-term value for all our stakeholders with a clear growth path in an accelerating global offshore wind market.”
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