Growing the South’s bio-based economy: HEMSPAN® to establish Scottish Borders base and create up to 100 jobs 

We have backed an ambitious project to establish a new bio-based manufacturing facility and support up to 100 jobs in the Scottish Borders, as part of a wider £4million funding round for construction technology company HEMSPAN®. 

The agreement will allow HEMSPAN® to expand its BIOHAUS® natural-fibre building system to the region, locating manufacturing closer to the agricultural materials and skills on which it depends. 

Made using renewable materials including industrial hemp and timber, the whole house panel system can be assembled to create a range of energy-efficient, low-carbon homes, as well as public and commercial buildings. 

Project Borders

Entitled Project Borders, the move is expected to support 100 jobs over the next three years and create new opportunities across the region's supply chain, from growing and processing to manufacturing and construction.  

Rather than simply establishing a new manufacturing facility, HEMSPAN®’s ambition is to develop an interconnected regional supply chain. 

This supply chain would aim to link local agriculture and natural-fibre production with advanced manufacturing and sustainable construction, demonstrating how innovation and natural assets can create new economic opportunities in the South of Scotland. 

SOSE support

Our near-£1 million investment will support HEMSPAN®’s long-term commitment to the Scottish Borders and its aim to establish a regional circular bioeconomy by creating a local supply chain, advanced manufacturing and sustainable construction. 

Our investment and support are expected to lead to significant investment from private investors, family offices and Venture Capital Trusts (VCTs), enabling HEMSPAN® to grow its business in the Scottish Borders. 

The arrival of HEMSPAN® in the Scottish Borders will also support the South of Scotland Housing Action Plan, launched in 2024 to help address the need for more homes and a wider choice of housing in the region. 

Minister for Business and Fair Work Tom Arthur said: 

“This is fantastic news for the South of Scotland.  

“HEMSPAN® is an exciting manufacturing company with an innovative and sustainable product for use in construction. 

“With support from South of Scotland Enterprise, it is great that it is committing to the region, creating new jobs and opportunities in the coming years.” 

Russel Griggs, Chair of SOSE, added:  

“HEMSPAN® is the perfect example of the type of business SOSE wants to attract to our region, which is Scotland’s Natural Capital Innovation Zone.  

“Our support will enable HEMSPAN® to invest in Scottish manufacturing, provide opportunities for local farmers to grow industrial hemp, and create up to 100 jobs in the Scottish Borders. 

“There is increasing demand for lower carbon, energy-efficient construction, which HEMSPAN® has the ability to help deliver, and transform the housebuilding sector.” 

Matthew Belcher, Chief Executive Officer of HEMSPAN®, said:  

“This is a pivotal moment not only for HEMSPAN®, but for the future of manufacturing in the Scottish Borders and the wider UK construction industry. 

“We are not simply co-locating and establishing a manufacturing facility. We are building an interconnected supply chain that links farmers, natural fibre production, advanced manufacturing and the delivery of better-performing, lower-carbon buildings. 

“Project Borders represents a long-term commitment to the region.  

“It is about creating economic value locally, supporting farmers, providing jobs and helping transform the way we build homes and places for future generations. 

“The support from South of Scotland Enterprise recognises the potential of this opportunity to establish the Scottish Borders as a leader in the emerging bio-based economy and demonstrate how regional investment can deliver meaningful climate and economic impact. 

“By bringing together agriculture, innovation and construction, we can create a circular model where materials are grown, manufactured and used closer to where they are needed, reducing emissions while creating lasting economic resilience.”