[Alpha Biz= Kim Jisun] Hyosung Heavy Industries announced on May 8 that its contract with Ørsted, the world’s leading offshore wind power developer, has been terminated, just six months after it was signed. The cancellation follows Ørsted’s decision to scrap the Hornsea 4 offshore wind project in the UK.
The deal, signed in November 2023, involved the supply of 400kV ultra-high voltage transformers and reactors—devices used to improve power quality—for the Hornsea 4 project, which was planned near the Yorkshire coast in northeastern England. The contract was nullified following a termination notice from Ørsted.
Ørsted had been developing the 2.4GW wind farm as part of its broader expansion in the UK renewable energy market. However, the project was canceled due to rising costs and worsening macroeconomic conditions.
In an official statement released the day before, Ørsted CEO Mads Nipper cited “deteriorating macroeconomic conditions, persistent supply chain challenges, and increased execution, market, and operational risks” as reasons for halting the Hornsea 4 project, noting that the project's ability to deliver long-term value had been significantly undermined.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
