Korean manufacturer Doosan Power Systems has killed its plans for a Scottish wind power project.
The firm originally intended to invest £170 million in Scotland, which would have gone into a research centre in Renfrew as well as a turbine factory near Glasgow. It has now cancelled these plans.
“In light of the overall economic conditions and liquidity issues in Europe, Doosan Power Systems decided in December 2011 to withdraw from its plans for developing offshore wind turbines in Scotland,” said the firm in a statment.
The news has brought Scottish First Minister Alex Salmond under pressure, as he was forced to deny the news had been suppressed,
During a sitting of the Scottish Parliament, his Labour counterpart Johann Lamont questioned why Mr Salmond hadn’t announced their withdrawal from the project himself.
She suggested this was notable, since Doosan had been a key part of the Scottish government’s “litany” of supposed economic successes.
The First Minister said Doosan’s research and development into boiler making was continuing, adding: “We also expect Doosan to make more important investments in Scotland in the future.”
Scotland has ambitious targets to meet all of its electricity demand with renewable sources by 2020.
The Scottish Government denies the Doosan setback will prevent it achieving this goal.