More than 40% of the electricity from wind power in the UK is provided using Siemens Wind Power technology.

An £80 million wind turbine factory will create around 700 jobs and secure the livelihoods of many more as Siemens announces plans to grow its renewable energy strategy.

Siemens is the ninth biggest supplier of wind turbines in the world with a market share of 5.9% according to BTM, a renewable energy consultancy. In a concerted effort to catch up with competitors Vestas and GE, which have global market shares of 12.5% and 12.4% respectively, Siemens said it will develop an offshore wind turbine production facility and has already identified a number of potential sites on the East Coast and North East of England.

“With the new wind turbine production plant in the UK we’re pushing ahead with our strategy of investments in attracting growth markets for eco-friendly technology. In the foreseeable future the wind power market in the UK will be characterised by major offshore projects, and we’ll extend our market leadership with the new production plant,” commented Peter Löscher, President and CEO of Siemens AG.

Andreas J. Goss, Siemens Chief Executive in the UK, said: “With the anticipated growth in the renewables market, there is potential for expansion of the facility in the future. This £80m investment plus additional investment in our UK infrastructure for renewables will provide a much-needed economic boost for the region, as well as driving growth in the UK’s innovative wind power industry.”

Mr Goss said that as well as the 700 local jobs which will be created at the production plant, more jobs will be created in the supply chain.

According to the Energy Saving Trust more than 40% of Europe’s wind energy blows over the UK, putting it in an ideal position to harvest energy through wind turbines.

Siemens’ announcement follows a promise by the Chancellor in the Budget last week of a competition for up to £60m of funds to develop sites close to ports that will support manufacturing for the offshore wind industry.

The UK Government has prioritised investment in the green energy market, in particular the offshore wind sector, which it says “is crucial to enable the UK to realise its renewable energy ambitions.”

Energy Secretary Ed Miliband commented on the announcement: “This is a vote of confidence from one of the foremost companies in the offshore wind sector, looking to set up a base in the UK. More proof that we’re exploiting the great natural resource that we have and creating the right conditions to attract investment. Siemens’ investment will help create jobs and help us meet our renewable energy targets.”

The news comes off the back of an announcement by Siemens last week that it would be axing 4,200 IT roles by April 2011 in order to make it “fit for the future.”