THE North-east has lost its fight to bring a major wind turbine factory to the region.

Energy giant Siemens will build its 2014 facility in Hull, in partnership with Associated British Ports (ABP), which local leaders believe will create thousands of jobs in the local supply chain.

Disappointed business chiefs on Teesside described the move as a “big blow” to the region’s hopes of becoming a centre for offshore wind manufacturing - but they remained optimistic there will be enough work still to come from the burgeoning sector.

“This is disappointing, but we’re at the very beginning of a new industry,” said Alex Dawson, from TAG Energy Solutions, which is investing £20m in a Haverton Hill turbine foundations facility.

“There’s a huge opportunity for Teesside in particular to deliver across Europe, not just the UK sector.

“We have just taken three major enquiries for work in German waters.”

David Robinson, group chief executive of PD Ports,” said: “This announcement shows the sector is very much moving forward.

“It’s a huge investment, but Hartlepool will be best positioned to service a number of projects, not just one big company.

“The scale they want Hull to deliver on would be difficult to achieve on Teesside. We want a wider relationship with the market, not just with one particular player.