Plans to build a £50 million facility on Tyneside to make foundations for wind farms have been postponed.
Engineering firm Offshore Group Newcastle (OGN) had estimated the project could create around 800 jobs when it received planning permission for the factory in 2012.
Its subsidiary, Aquind Limited was granted £4.5 million from the Government’s Regional Growth Fund to support the construction of the facility.
The company has however shelved plans due to “delays and uncertainties” and “lack of confidence” in the offshore industry.
A spokesperson said: “The continued uncertainty within the UK and European offshore renewables sector has led to the postponement of our proposed fabrication facility. The industry has been blighted by delays and a lack of confidence from investors and operators, which has prevented the level of activity that would validate a significant investment in our operations.”