Financially-troubled German foundation manufacturer, Siag Nordseewerke, has brokered a short-term deal designed to ensure it will supply the Global Tech 1 offshore wind project with tripods from its Emden factory.
As previously reported by Windpower Offshore, Siag Nordseewerke is battling against insolvency, a situation that has created delays in production and, thus, raising questions about its ability to honour a contract to supply 40 of 80 tripod foundations for the Global Tech 1 offshore wind farm.
Final assembly of 20 of these tripods has already been subcontracted to Weserwind. Now, new agreements announced on 21 November set out Nordseewerke will supply at least 10 of the 40 tripods, including the fixing piles and other components.
Siag Nordseewerke and Global Tech 1 are also seeking a further partner to support them with contract delivery. "The partner would bring its know-how for the works and employees to ensure production at Emden continues according to schedule. This would secure the works in Emden well into spring 2013,” said Global Tech 1.
Subcontracted work planned for Weserwind should go ahead, with negotiations under way to ensure delivery is kept on schedule.
Global Tech 1 is also considering placing an order with a third supplier for up to 10 tripods, in order to accelerate production and compensate for delays that have built up over recent weeks. The exact number of tripods that will need to be produced by a third supplier will depend on how quickly efficient production in Emden can be restored.
The 21 November agreements are subject to approval from the insolvency court overseeing Siag Nordseewerke.
Six foundations installed
The other 40 tripods for Global Tech 1 will be supplied by ARGE Arge Global Tech 1, a consortium created by Erndtebrücker Eisenwerk and WeserWind. Six have already been installed at sea by installation vessel, Innovation.
All 80 foundations are scheduled for installation by summer 2013. Once completed, Global Tech 1 will have a rated capacity of 400MW.