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New blow for BiFab yards as offshore contract bid collapses

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New blow for BiFab yards as offshore contract bid collapses Empty New blow for BiFab yards as offshore contract bid collapses

Bài gửi by chanchai Fri Oct 30, 2020 11:52 am

The future of three BiFab fabrication yards in Fife and on Lewis are in even more doubt after its Canadian owners withdrew a bid for a major contract.
New blow for BiFab yards as offshore contract bid collapses _115015563_mediaitem107533799
DF Barnes had been negotiating to build jackets for wind turbines to be installed off Fife by French firm EDF.
But the company has pulled out, citing a refusal by the Scottish government to provide financial guarantees.
The government said rules on state aid limited the amount of support it could offer.
All three fabrication yards - at Burntisland, Methil and Arnish - are currently mothballed.
The Scottish government took a stake in the Bifab yards when they were saved from permanent closure in April 2018.
But it said it was legally barred from guaranteeing contracts while the majority shareholder was not funding the company or the yards.
BiFab's board of directors said they were "now considering the path forward for the company".
'Legally barred'
A company statement said the government's decision meant "it can no longer provide assurances for the NnG jacket fabrication contract".
It added: "BiFab recognises that this makes an award of the contract very challenging. The company and its partners have worked extremely hard to secure this important contract."
Economy Secretary Fiona Hyslop told BBC Scotland: "The situation at BiFab is serious."
She added that as a minority shareholder the amount of funding ministers could provide had been "exhausted".
The Scottish government highlighted that it had already invested £37.4m through a combination of equity and loan facilities and converted this to a 32.4% equity stake in BiFab.
"A loan facility of £15m has also been provided to support working capital," the spokesman added.
"We will continue to do everything possible to support the business while recognising the need for us to remain in line with State Aid regulations."
New blow for BiFab yards as offshore contract bid collapses _115023182_turbine
Trade unions have been highly critical of the failure to secure more renewable power engineering work for BiFab.
Work on turbine jackets was seen as the best hope for Scotland's offshore fabrication sector.
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chanchai

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