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 in race to seal a deal to secure its future
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.
BiFab confirms redundancy plans as hundreds face losing jobs
“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. ”
Lawsuit threat to BiFab's survival after £15m loan
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.
BiFab set for permanent rescue deal
“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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