AN MP has voiced concerns about potential asset stripping after a £28m factory regarded as a leader of the region’s green energy revolution was mothballed with the loss of about 100 jobs.

Tag Energy Solutions offshore wind turbine plant on the north bank of the River Tees has been put up for sale after falling to win enough orders.

When the company opened on a former shipyard at Haverton Hill, near Billingham in 2011 it was regarded as one of the jewels of the regional renewable energy industry with bosses predicting it would soon employ 400 workers. It was backed with £3m in grants from the Department for Energy and Climate Change and regional development agency One North East.

After struggling to make its mark in a fiercely competitive sector,

last year’s deal to make huge steel sections for the Humber Gateway wind farm was regarded as a breakthrough. But in recent weeks creditors have called in loans and workers paid-off, leading to the plant being mothballed.

The Northern Echo understands that two potential buyers have

shown interest in buying Tag’s site and high tech equipment, but there are concerns that the plant will never reopen and that public money used to support the business has been wasted.

Stockton North MP Alex Cunningham fears that, if a buyer isn’t found quickly, the site and equipment said to be worth £28m just three years ago could be sold off cheaply and the potential of the site for jobs lost for years to come.

Mr Cunningham said: "This is a doubly sad day for Teesside – first there was the Tata Steel announcement that they were looking to sell local assets, and now the potential demise of Tag Energy Solutions.

“My understanding is that, in recent years, the company has concentrated almost all its activity on wind farm work at the expense of a more diverse workload including their traditional oil and gas sector areas.

“That, coupled with the change in Government policy and failures to help British companies secure many of the lucrative contracts for offshore wind farms, has put them in a very difficult situation.

“I am aware that the 66 employees on the site were made redundant last month and the facilities mothballed pending a sale – but that there was more than one organisation interested in buying it as a going concern.

“I am aware that the company has yet to repay a debt to a London based finance organisation and that they will be the main beneficiaries of the sale assuming a new buyer can be found."

Last year, Alex Dawson stood down as chief executive to be replaced by Stuart Oakley, a specialist in marine and offshore construction. At the time Mr Oakley said: “Tag has established itself as an effective operator in the offshore renewables supply chain and I am keen to build on those successes."

Last night Mr Cunningham added: "My understanding from Mr Oakley is that the company hasn’t yet been placed in administration and there is no intention to do so. I am awaiting a call from the person dealing with the company and want to emphasise to them how critical it is that a working business is sold rather than the assets simply stripped away.

“I have also contacted the company which I believe is the one behind the loan though there was no-one there prepared to speak to me, but a receptionist said someone would call me back.”