Sumitomo Corporation is no stranger to investing in offshore wind, as they hold stakes in several offshore wind farm projects globally. Moreover, they have invested in the offshore wind supply chain, recently acquiring a stake in the vessel company IWS. Now, they are investing in EEW, a leading manufacturer of offshore wind foundations, particularly in the monopile segment.

What is driving EEW to enter this strategic partnership? By maintaining their strong market position, EEW is restructuring and allowing Sumitomo Corporation to take an equity stake in the company. EEW aims to be better positioned for higher demand going forward. In the short term, this announcement does not indicate any new facilities, and it remains European-focused, dismissing any notion of EEW branching out into Japan. Additionally, potential losses on the US Ocean Wind projects could be a practical reason for restructuring and establishing this strategic partnership.

However, in the long term, we expect more projects, more fixed foundations, and potentially larger monopiles that will surpass EEW’s current maximum diameter manufacturing capacity, necessitating the construction of larger facilities.

Image source: EEW