Tyne & Wear

Wallsend offshore facility stalled due to industry 'uncertainty'

Wind turbines
Image caption The foundation structures were to be designed and developed by Offshore Group Newcastle's subsidiary Aquind

Plans to build a facility on Tyneside to make foundations for wind farms has been postponed due to "lack of confidence" in the industry.

Engineering firm Offshore Group Newcastle (OGN) was awarded a £640,000 government grant in 2012 for the new purpose-built facility in Wallsend.

The move was expected to create up to 1,000 new jobs.

However, "continued uncertainty" within the offshore renewables sector has stalled the development, OGN said.

An OGN spokesman 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, the firm said it would use the money to build the foundation structures for large wind turbine generators in waters more than 100ft (30m) deep.

The structures were to be designed and developed by its subsidiary Aquind, at OGN's new purpose-built facility at its Hadrian Yard in Wallsend.

OGN was founded in 2010 and works within the offshore oil and gas and renewable energy industries.

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