South Korean steel specialist SeAH Wind and offshore wind developer Ørsted have mutually agreed to discontinue monopile production on Teesside

Teesside windfarm manufacturer SeAH Wind has lost work on a significant UK windfarm with offshore developer Ørsted – the first contract it was awarded – after agreeing to cease production.

The South Korean steel expert, which launched construction on its £900m factory on the Teesworks site in 2022, and the Danish developer released a joint statement announcing a mutual agreement had been reached to suspend work on the production of monopiles for Ørsted’s Hornsea 3 offshore wind farm.

This decision follows “a shared assessment of factory readiness against the programme requirements of Hornsea 3”. The statement indicates that halting production on the Hornsea 3 deal allows SeAH Wind to concentrate on completing the backlog of orders it has pending, and to progress its future pipeline. Ørsted, on the other hand, stated that the Hornsea 3 project has not been impacted by the production stoppage at SeAH.

The Ørsted’ deal was the first contract that the SeAH Wind Teesside factory secured, but other work includes the construction of monopiles for RWE’s Norfolk Vanguard project this year. It remains unclear whether jobs will be lost due to the contract’s termination, reports Teesside Live.

The statement read: “SeAH Wind and Ørsted confirm that they have mutually agreed to discontinue monopile production for the Hornsea 3 offshore wind project. This decision reflects a shared assessment of factory readiness against the programme requirements of Hornsea 3.

“It ensures that the project schedule for the world’s largest offshore wind farm remains protected and uncompromised. The agreement allows SeAH Wind to focus on the safe and reliable delivery of its secured order backlog through to 2027, whilst continuing to progress a strong pipeline of opportunities beyond that period. This underlines confidence in SeAH Wind’s technical capability, manufacturing scale, and long-term role in the UK and European offshore wind supply chain.”

The development represents a significant setback for the North East and Britain’s green energy sector, arriving more than three years after Ørsted signed the ‘industry first’ contracts. Under the original arrangement, SeAH Steel Holdings was to manufacture the enormous seabed-piercing structures, alongside Spanish partner Haizea Wind Group.

The Danish energy giant finalised the agreement with SeAH Wind in September 2022, shortly after construction commenced at SeAH’s XXL monopile facility at the Teesworks site. Workers at the vast Teesworks plant began the maiden project last July, commemorating the occasion with a ceremony featuring the cutting of the first steel plates.

When the agreement was finalised, business leaders praised Ørsted for becoming the first major client for the developing facility in the North East. The two companies stated the partnership would “contribute significantly to the UK’s ambitious goal of achieving 50GW of operational offshore wind capacity by 2030”, describing it as representing “represents not only a significant leap forward in the right direction for the development of offshore wind in the United Kingdom, but acts as a benchmark for the future scale of the industry at a global level”.

Tees Valley Combined Authority declined to comment on the suspension of the contract. Ben Houchen wrote in a Facebook post last Friday: “One year ago today, it was an honour to welcome His Majesty The King to Teesside and to visit the SeAH Wind factory. It was a huge moment for everyone involved, from the apprentices just starting out to the experienced engineers helping build the future of offshore wind. His Majesty’s visit shone a spotlight on the scale of what’s happening here.

“World-class manufacturing. Serious investment. And real, well-paid jobs for local families. Twelve months on, production is progressing, skills are being developed, and this site is playing a key role in powering Britain’s clean energy future.”

The announcement follows Ørsted’s receipt of six monopiles for Hornsea 3 – produced by Haizea Wind at their Bilbao facility in Spain – which arrived at the Teesworks location.

Speaking on ET Now, Sumit Pokharna from Kotak Securities described the partnership as “a step in the right direction” and “the need of the hour.” He explained, “The goal of this partnership is to help companies in complex and regulated industries use AI safely. Industries like telecommunications, banking, insurance, manufacturing, and software development cannot experiment freely with AI. They need governance, transparency, compliance, reliability, and security.”

On whether larger IT companies would have an advantage over midcaps in AI collaborations, Pokharna said, “Large companies will have an upper hand because of the bandwidth they have, but we cannot ignore midcap companies who have specialization in niche areas, like Coforge or Hexaware Technologies. They have unique skills, strong focus, and deep customer relationships. They will also benefit—it is not just that larger companies will take the entire cake.”

Regarding potential revenue impact and AI-driven growth, Pokharna noted, “So far what we have pencilled, we believe we have already pencilled a part of it, and we expect 2% to 3% lower growth over the next three years because of GenAI. AI risk is not being ignored. The worst impact is expected in 2027, which could be the year when investor pessimism about IT stocks will be at its highest.”

On the market’s reaction to AI and valuations, he added, “Markets are currently discounting too much disruption. AI improvements are meaningful but incremental. Current stock prices already reflect low long-term growth. Some quality challengers may benefit from AI rather than suffer from it. We believe the market is pricing long-term AI disruption more aggressively than the evidence justifies, and that overreaction may create investment opportunities for smart investors who can buy value or quality stocks at reasonable valuations.”

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On whether valuations could compress further, Pokharna warned, “The narrative that AI will disrupt and reduce working hours and billing rates has created pessimism. IT sector stocks have corrected significantly. It is a falling sword—we cannot rule it out. But this is an overreaction, as full evidence is not yet available. Whenever such negative expectations build up, it often gives opportunities to smart investors.”
With AI partnerships gaining momentum, industry watchers say investors should focus on fundamentals and sector specialization rather than short-term market noise. The Infosys-Anthropic collaboration may mark just the beginning of a wave of AI-driven alliances in the Indian IT sector.

UK unemployment has climbed to its highest level in five years while wage growth continued to ease, strengthening expectations that the Bank of England will resume cutting interest rates in the coming months.

Official figures from the Office for National Statistics show the jobless rate rose to 5.2 per cent in the three months to December, up from 5.1 per cent in the previous rolling quarter. Unemployment has been edging higher since 2022, reflecting a steady cooling in the labour market.

At the same time, average earnings excluding bonuses increased by 4.2 per cent year-on-year, down from 4.5 per cent in November and in line with economists’ forecasts.

The slowdown comes against a backdrop of higher labour costs following the chancellor’s £25bn rise in employer national insurance contributions introduced in October 2024, alongside increases in the national living wage.

Younger workers appear to be disproportionately affected. Payroll data show that employment among those aged 34 and under has fallen by 242,000 since mid-2024, when overall payroll numbers peaked. By contrast, employment among workers aged 35 and over has risen by 71,000.

Martin Beck, chief economist at WPI Strategy, said higher labour costs were weighing most heavily on entry-level hiring. “At the same time, firms are likely reassessing junior roles in the face of rapid advances in AI,” he added.

The softening labour market has reinforced market bets that the Bank of England will cut rates from their current level of 3.75 per cent. According to Bloomberg data, traders are now pricing in a roughly 76 per cent chance of a rate reduction at the next meeting in March.

Paul Dales, chief UK economist at Capital Economics, said the data supported the view that policymakers have “at least a couple more interest rate cuts in their locker”, with the probability of a March move increasing.

At its most recent meeting, the Bank’s monetary policy committee voted 5–4 to hold rates steady, a closer split than anticipated by analysts. Governor Andrew Bailey has since indicated that further policy loosening remains possible this year.

Yael Selfin, chief economist at KPMG, said the latest figures would reassure rate-setters that pay pressures are easing. “The MPC will take comfort from evidence that the labour market continues to soften,” she said.

Wednesday’s inflation figures will be closely watched. Economists expect the consumer prices index to fall to 3 per cent in January, down from 3.4 per cent in December, driven by lower airfares, easing food prices and slower energy inflation. That would mark the lowest reading since March 2025.

Stephen Kinnock, a health minister, pointed to recent job creation and economic growth, saying the UK had delivered the strongest growth among G7 European economies last year. He added that government initiatives were under way to support employment and apprenticeships.

However, business groups argue that recent employment reforms have made hiring more costly and risky. Alex Hall-Chen of the Institute of Directors said unemployment reaching 5.2 per cent underlined the fragility of the jobs market.

“The best way to boost employment is to make it less risky and less costly for businesses to hire staff,” she said, calling for adjustments to the Employment Rights Act and exemptions for small and medium-sized enterprises.

Jonathan Moyes, head of investment research at Wealth Club, said the alignment of weaker job growth and moderating wages could shift the Bank’s stance. “Wage growth has been the last domino holding back rate cuts,” he said. “Now both employment and wages are weakening, the case for further easing strengthens.”

For policymakers, the message from the data is clear: the labour market is losing momentum, and the balance of risks may now tilt towards supporting growth rather than restraining inflation.

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

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Topshop is making a nationwide return to bricks-and-mortar retail, launching in 32 John Lewis stores in its most significant high street comeback since the collapse of Arcadia Group in 2020.

The relaunch, which also sees Topman stocked in seven John Lewis locations, marks the first time in four years that the brand has returned to physical retail at scale.

Topshop’s original Oxford Street flagship was once a defining force in British fashion, famously drawing crowds when Kate Moss launched her collection in 2007. Its revival within John Lewis stores aims to recapture some of that cultural resonance.

After Arcadia entered administration, Topshop was acquired by Asos, which later sold a 75 per cent stake in the brand to Heartland, the investment arm of Danish billionaire Anders Holch Povlsen, founder of Bestseller.

Historically associated with shoppers aged 16 to 24, Topshop now returns via a retailer traditionally known for appealing to an older demographic. John Lewis said the move is designed to broaden its appeal to younger consumers while reconnecting with millennials who grew up with the brand.

The department store chain has been rebuilding its position after years of intense competition from rivals such as Marks & Spencer, a pandemic-driven shift towards online shopping and previous expansion missteps that left it with excess retail space.

Under a new leadership team, John Lewis has pursued a back-to-basics strategy, focusing on customer service, reintroducing its “never knowingly undersold” pledge and investing heavily in its in-store experience.

The Topshop relaunch coincides with London Fashion Week and features around 130 pieces across denim, tailoring, outerwear and wardrobe staples. Signature styles such as the Jamie and Joni jeans return alongside updated designs. Cara Delevingne fronts the new campaign.

Peter Ruis, managing director of John Lewis, described the partnership as a significant step in its fashion strategy. “To be the exclusive home of an iconic brand like Topshop signals our ambition to be the definitive style authority on the British high street,” he said.

Michelle Wilson, managing director of Topshop, said the partnership would bring the brand back to high streets across the UK “with the level of service our customers expect”.

The relaunch forms part of a wider £800m multi-year investment by John Lewis, which includes refurbishments of key stores, notably its Oxford Street flagship, and the introduction of 14 new fashion brands across womenswear and menswear.

For Topshop, the move represents a symbolic return to physical retail. For John Lewis, it is a calculated bet that brand nostalgia and refreshed fashion credentials can help reignite footfall on Britain’s struggling high streets.

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

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