Sumitomo Corporation has reached an investment and business operation participation agreement with EEW Offshore Wind EU Holding (EEW), a Germany-based worldwide leading manufacturer of “Monopiles”, large diameter steel pipes used for the foundation of bottom-fixed offshore wind power generation. Completion is scheduled for the end of December 2024, subject to various legal and regulatory requirements.

Monopiles being loaded at EEW quayside in Rostock, Germany

Investment Background

EEW is a worldwide leading supplier of monopiles. EEW’s strength is its mass production system enabled by sophisticated technology to bend extra-thick steel plates over 100mm thick and advanced high-quality welding technology. Sumitomo Corporation has been engaged in trading activities with EEW since the 2000s and has a strong business relationship with the company.

In recent years, the energy market in Europe has undergone significant change, such as a major growth in the renewable energy sector and numerous large-scale offshore wind projects. Europe's offshore wind power development target is expected to rise to 164GW by 2030 and 549GW by 2050 in a generating capacity basis, and the demand for monopiles is forecast to increase from 650 thousand tons per year in 2023 to exceed 1 million tons per year in 2026.

Sumitomo Corporation’s initiatives in the offshore wind power industry

In Sumitomo Corporation’s Medium-Term Management Plan announced in May 2024, the business relating to offshore wind power industry was positioned as a GX (Green Transformation) business that will further enhance our strengths and competitive advantages.

Sumitomo Corporation is developing businesses with the aim of contributing to the realization of carbon-neutral societies across the globe in a wide range of areas, including the offshore wind power generation business, ownership and operation of construction support vessels and heavy lifters, and the building of supply chains for floating offshore wind foundation structures.