May 17, 2020

ScottishPower to invest up to £6bn in developing UK offshore wind supply chain

Supply Chain
Sustainability
Dale Benton
2 min
ScottishPower to invest up to £6bn in developing UK offshore wind supply chain
ScottishPower, one of the leading energy suppliers of gas & electricity in the UK, has announced that it will invest £6bn into the countries offsho...

ScottishPower, one of the leading energy suppliers of gas & electricity in the UK, has announced that it will invest £6bn into the countries offshore wind supply chain.

The company announced this week that as part of a £6bn investment, it will “actively pursue” future offshore wind projects in England and make a significant contribution the offshore wind supply chain.

It comes as part of a wider Offshore Wind Sector Deal, launched across the UK this week, which will see up to £250mn investment in “building a stronger UK supply chain.” The deal will drive the transformation of offshore wind generation, making it an integral part of a low-cost, low-carbon, flexible grid system and boost the productivity and competitiveness of the UK supply chain. This focus on building the capability of the UK’s supply chain will allow companies to play a greater role in its global leadership in offshore wind generation while enhancing their competitiveness internationally.

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ScottishPower is currently constructing a £2.5bn offshore windfarm in the east of England, is working on gaining approval for a second to begin construction in 2024 and a third in 2025.

“We have a fantastic supply chain already in place in the UK, from businesses in and around East Anglia to across England, across Scotland as well as Northern Ireland,” said Keith Anderson, ScottishPower Chief Executive. “The Sector Deal will attract even more businesses in the UK to join the offshore wind supply chain and we are excited to see the transformative impact this will have on our projects.”

“Our East Anglia ONE windfarm is the first and biggest project to be delivered under the Government’s supply chain plan and has the highest UK Content of all, above the current industry average of 50%, ensuring the benefits are felt across the country. We’re pleased the importance of UK businesses is recognised within the Sector Deal investing £250million into the UK supply chain.”

 

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Jun 16, 2021

EU and US agree end to Airbus-Boeing supply chain tariffs

supplychain
Boeing
Airbus
tariffs
3 min
Supply chains embroiled in Airbus-Boeing dispute will no longer be impacted by $11.5bn tariffs imposed on food and beverage, aircraft and tobacco

The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic. 

Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years. 

It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC. 

The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn. 

In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products. 

Boeing-Airbus dispute by the numbers  

  • The dispute began in 2004
  • Tariffs suspended for 5 years 
  • $11.5bn worth of goods affected by tariffs
  • $3.3bn in duties paid by businesses to date 
  • 15% levy on aircraft and 25% on non-aircraft goods suspended

Both sides welcome end to tariffs 

European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.

“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.

Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”. 

The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."

This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.

Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”

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