OGN said "continued uncertainty" in the offshore sector caused the development of the fabrication yard to be put on hold.
An OGN spokesperson said: "The industry has been blighted by delays and a lack of confidence from investors and operators, which has prevented the level of activity that would validate a significant investment in our operations."
In 2012, OGN submitted plans for the 36,000 square metre factory in Wallsend, northeast England.
OGN was awarded £4.5 million by the government's Regional Growth Fund to help with the development.
Last year, OGN and the department for Business, Innovation and Skills (BIS), which is responsible for the fund, agreed to withdraw the grant due to a "lack of feasibility" the money would be used.
The facility was due to build a prototype jacket foundation called 'Triton' designed by OGN's sister company Aquind. Development of the site would have seen it produce 50-100 jacket foundations a year.