Tom Gordon Scottish Political Editor
THE Scottish Government has a stake in the troubled engineering firm BiFab
to help secure hundreds of jobs, the First Minister has announced.
Nicola Sturgeon today visited its fabrication yard in Fife to announce new
investment has been found for the firm’s two sites in Fife and at Arnish in
the Western Isles.
Canadian company JV Driver, through its subsidiary DF Barnes, has acquired
BiFab in a government-brokered deal to support marine, renewables and
energy sector construction.
Scottish Ministers will have a minority share in the new business.
However the government also warned there were still “no guarantees” that
future work contracts could be found.
BiFab has been under threat since ministers gave it a temporary £15m loan
in November.
Redundancy notices were issued to workers in February, as BiFab said it was
“down-manning” as work ran ended on the £2.6bn Beatrice offshore windfarm.
The company has a workforce of 260 permanent staff, as 1200 agency and
contract staff relying it for employment.
The First Minister said: “We are delivering on the commitment I made last
year that we would stand by BiFab and work to secure a long term future for
the company.
“We have been in negotiations with DF Barnes for a number of months and
today is a significant step forward in our efforts to restore BiFab to its
place at the centre of Scotland’s marine energy industry.
“DF Barnes acquisition is a key milestone for all three BiFab yards and as
a sign of our commitment to the company’s future, the Scottish Government
will maintain a close interest by taking a minority shareholding in the
company.
“There is a lot of hard work ahead, and there is no magic bullet for these
yards but the commitment of DF Barnes to securing a new future for the
business at Burntisland, Methil and Arnish is a hugely positive step and I
believe that gives BiFab the best chance of winning future contracts and
securing new work.
“This announcement is also a tribute to the efforts of the trade unions and
employees at BiFab whose dignified actions throughout this difficult time
have played a huge part in enabling us to bring in new investors and
creating new employment opportunities in Fife, the Western Isles and for
the Scottish economy as a whole.”
JV Driver is one of Canada’s largest independent construction companies,
and DF Barnes has been an employer in the oil and gas, fabrication and
marine industries for over 80 years.
DF Barnes CEO Jason Fudge said the firm now had a “major presence” in
Scotland.
He said: “Scotland has been an admired world leader in the offshore oil and
gas and renewable energy sectors and we are delighted to join with the
employees of BiFab and the people of Scotland to ensure the continued
growth of BiFab for the benefit of all. ”
DF Barnes VP in Business Development Sean Power added: “We will work
closely with management and the union representatives to ensure continuity
for the people who work for the company. “We are sensitive to the
commitment that employees have made to BiFab and will work hard to meet
their expectations.”
Economy Secretary Keith Brown said the deal gave the workforce, the company
and the government the best possible chance of securing a future for the
yards.
He said: “The Scottish Government believes BiFab can be a thriving
business, supporting Scotland’s offshore renewables and oil and gas
industry as well as competing internationally.
“As the current contract comes to an end, and while efforts go into winning
new work there will continue to be difficult times for the yard and there
can be no guarantees that contracts will be won but I am confident this
agreement, which sees the Scottish Government become a minority shareholder
in the company, will deliver for BiFab’s future in Fife and the Western Isles.”
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