Labour confirms it will block Chinese firm Ming Yang from opening £1.5bn wind turbine factory in Scotland over national security fears
Ministers have officially vetoed plans for a Chinese firm to build the UK's largest wind turbine factory in Scotland.
Energy Minister Michael Shanks said he was blocking Ming Yang's proposed £1.5billion facility at Ardersier Port near Inverness, which would have created up to 1,500 jobs.
In a written statement today he said the Government 'cannot support the use of (the turbines) in UK offshore wind projects ... we have informed offshore wind developers of this'.
The decision effectively kills Ming Yang's plan to build the UK's biggest turbine factory, sparking claims from First Minister John Swinney that the Labour government is 'sabotaging Scotland's industrial future'.
The decision came after a lengthy deliberation process, with trade minister Sir Chris Bryant saying in January that the UK had to be 'clear eyed' in its relationship with China.
And the chairman of Westminster's Business and Trade Committee, Liam Byrne, said 'over-reliance on China in strategic sectors leaves Britain exposed to coercion, disruption and unfair competition'.
Ministers and officials had been examining the potential national security implications around Ming Yang since it was linked last year to a supply deal for the Green Volt floating wind farm around 50 miles north-east of Peterhead in Aberdeenshire.
Last year the UK Government intervened to prevent Jingye, the Chinese owner of British Steel, from shutting down the last two operational blast furnaces in Scunthorpe, Lincolnshire.
Ming Yang's plan for a wind turbine factory in Ardersier Port near Nairn have been blocked by the UK Government
Ardersier Port is located on the Moray Firth, near Inverness
First Minister John Swinney said the Labour government is 'sabotaging Scotland's industrial future'
The crisis raised questions about whether key UK industries should be allowed to fall under foreign control.
US Congressman John Moolenaar said China was 'a foreign adversary', while the Ministry of Defence also raised concerns about the implications of Chinese companies building wind farms for Britain.
The Chinese Communist Party dismissed the comments as 'baseless and discriminatory'.
Speaking at the SNP’s Holyrood election campaign launch in Glasgow this morning, Mr Swinney said he had not been informed of the decision before it was announced.
“Was I blindsided by this? Yes, I was,” he said.
“This has been kicking around in the UK Government, they’ve had it for 18 months, and I’ve heard on countless occasions there’s going to be a decision this week, no there’s not – and it’s gone like that for ages.
“I’ve been around and one of the advantages of being around long enough is that you know all the tricks in the book.
“Don’t tell me there was a coincidence that that announcement was made at the very end of the Scottish parliamentary session.
“That’s not a UK Government acting in good faith and they no longer are acting good faith.”
But Mr Byrne, chair of the Business and Trade Committee, had earlier said: 'Our Committee has consistently warned that in a more unstable world, where China has too often resorted to the tactics of economic coercion, we simply can't surrender control of our energy supply chain in ways that create the risk of new and unwise dependencies'.
Chinese firm Ming Yang said its plans could have led to 1,500 jobs - but they have been vetoed by the UK Government
A Ming Yang spokesman said the company was 'disappointed' but 'committed to supporting the UK's mission to become a clean energy superpower'.
Mr Swinney posted on X: 'Deeply disappointed that the UK Labour government has blocked Ming Yang's investment in our renewables industry – putting up to 1,500 Scottish jobs at risk.
'They are sabotaging Scotland's industrial future.'
Deputy First Minister Kate Forbes said Labour 'has pulled the rug out from under Scotland's renewables industry'.
Ardersier, a former North Sea fabrication yard, is being redeveloped and forms part of the Inverness and Cromarty Firth Green Freeport.
