Administrators have been formally appointed to take control of the insolvent renewables manufacturer run from Canada seen as a key part of the future of Scotland’s wind farm revolution.
Deloitte will now take control of the affairs of Burntisland Fabrications (BiFab) which collapsed after the Scottish Government did a u-turn in backing the firm.
The Scottish Government felt that providing key support for the ailing steel fabrications company at the centre of a wind farm jobs row would be seen as illegal state aid under European Union regulations.
Canadian firm JV Driver, through its subsidiary company DF Barnes, took total control of BiFab, which has yards in Methil and Burntisland in Fife and Lewis, for just £1 two years ago.
The ministers’ support came by way of a commitment to effectively underwrite a contract to have a part in the the £2 billion Neart Na Gaoithe (NnG) offshore wind farm project in the Firth of Forth to the tune of £30m.
Scottish Government sources revealed that a re-evaluation came after BiFab in September failed to win any work on Scotland’s largest offshore wind farm, the multi-billion pound Seagreen project, located just a few miles from its yards in Burntisland and Methil in Fife.
The yards had been operating on a skeleton 30 staff – with zero contracts but at its height employed hundreds.
Gavin Park and Clare Boardman, restructuring partners at Deloitte, have today been appointed as joint administrators.
They will now assess the prospects of BiFab with a view to finding a suitable buyer for the Scottish manufacturing company.
No redundancies are planned at this stage.
Gavin Park, joint administrator, said: “BiFab has faced tough trading conditions for several months. Despite the efforts of management, shareholders, and stakeholders, with no immediate revenue opportunities the business has now unfortunately entered administration.
“We are reviewing the company’s assets as part of our assessment of the business’s prospects. There is a strong pipeline of future wind contracts and projects across the UK, including in Scottish offshore waters. Through its long-established expertise, which is supported by sites in Fife and on the Isle of Lewis, BiFab would be well positioned to serve these.
“We have liaised with the Scottish Government in our development of the administration strategy and hope to generate interest in BiFab from one of the industry’s larger players. We believe the skills of the BiFab workforce, and the strategically important facilities, can be utilised to take advantage of future market opportunities.”
Economy Secretary Fiona Hyslop said of the development: “The Scottish Government will continue to do everything in its power to support BiFab’s workers and help forge a new future for the yards in Fife and the Western Isles.
“We are hopeful that a buyer willing to invest in the business will be found and we will work closely with administrators and trade unions to secure the best possible outcome for the workforce, the yards and local communities.
“We have already had requests for information from interested parties and will share these with the administrators to explore all of the options available. I have also contacted Saipem reiterating our commitment to BiFab’s workforce and to the contract to build foundation jackets for the Neart na Gaoithe (NnG) project being delivered in Scotland.”
The Scottish Government’s forecast of a jobs bonanza from the offshore wind farm revolution have previously been described as “a pipe dream” as it emerged it has created just 6% of the 28,000 direct jobs predicted by this year.
The Scottish Government’s low carbon strategy published in 2010 described the large scale development of offshore wind as representing the “biggest opportunity for sustainable economic growth in Scotland for a generation” with Scotland having an estimated 25% of Europe’s offshore wind potential. It said there was a potential for the creation of 28,000 direct jobs and £7.1 billion investment by 2020. https://www.heraldscotland.com/…/18942674.deloitte…/
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