MINISTERS say they remain "committed" to securing the future of the Scots-based renewables manufacturer run from Canada despite it being placed into administration.
Economy Secretary Fiona Hyslop said the Scottish government had worked for more than three years to support struggling Burntisland Fabrications (BiFab) and remained committed to securing a future for the yards and the workforce.
BiFab, which was seen as a key part of the future of Scotland's wind farm revolution is being put into adminstration after the Scottish Government felt that providing key support for the ailing steel fabrications company 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.
READ MORE: Anger as part Scottish Government-owned BiFab files for adminstration
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.
The owners of BiFab confirmed that the board had agreed to place the company in administration "following the Scottish Government’s decision to remove contract assurances".
Ms Hyslop acknowledged that it was "extremely worrying" for workers and said the government would continue to do everything possible to support them.
She added that as a minority shareholder, the Scottish government had been "exhaustive" in its considerations of support options and said there was no legal route for either the Scottish or UK governments to provide further financial support.
"In order to successfully secure and deliver new contracts, BiFab required working capital, the provision of appropriate assurance packages by the shareholders, and plans for investment at the sites," she said. "Despite commitments made at the time of acquisition, this is something the majority shareholder JV Driver was not willing to provide to secure future work."
“The Scottish Government has been working for more than three years to support BiFab through the financial difficulties it has faced and remains committed to securing a future for the yards and the workforce.
“We will now work with the administrators and trade unions to secure a new future for the BiFab yards in Fife and the Western Isles, helping ensure they are able to diversify and compete in this competitive market.”
At First Minister's Questions, Nicola Sturgeon said she "deeply regretted" and was "deeply disappointed" by the developments.
"We were not able to legally provide the additional support BiFab was seeking," she said. "Had the majority shareholder been prepared to invest, that may have been different.
“If there was more we could have done within the law to avert what has happened today, we would have done that.”
The GMB and Unite Scotland unions said the part Scottish Government-owned BiFab's fall into insolvency "exposes the myth" of Scotland's renewables revolution.
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