Siemens said it was “currently appraising the suitability of potential sites for the production plant, both on the east coast and in the northeast” of Britain.

The company added that around 40 percent of the wind power generated in Britain is now produced by Siemens wind turbines.

In January, the British government granted licences for a huge expansion of offshore wind farms, based around nine sites.

Officials hope the project can deliver a quarter of the country’s total electricity needs by 2020.

“There’s good news on jobs – an estimated 700 jobs as well as additional jobs in the supply chain,” the prime minister’s official spokesman said.

Business Secretary Peter Mandelson hailed the investment, saying: “Siemens are a world leader in wind technology and this is a fantastic endorsement of the UK as a destination for renewable energy businesses … confirming the UK as a world leader in offshore wind.”