BiFab deal collapse: Hopes dashed for windfarm jobs

A lifeline deal which would have brought jobs to Fife’s BiFab yards has collapsed, sparking concerns for the future of the company.
Bifab workers in Methil will not benefit from the windfarm built a short distance from the yard.Bifab workers in Methil will not benefit from the windfarm built a short distance from the yard.
Bifab workers in Methil will not benefit from the windfarm built a short distance from the yard.

A proposed agreement between BiFab and EDF for the manufacture of eight windfarm turbine jackets fell through this afternoon, dashing hopes that yards in Burntisland, Methil and Lewis would all benefit from the work.

The Neart na Gaoithe (NnG) offshore wind project will now be built off the coast of Fife not far from the Methil yard which is among those snubbed.

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Today unions attacked the Scottish Government saying it had “extinguished hopes” of the workers and their communities.

However, the Scottish Government, a minority shareholder in BiFab, blamed the majority holders for failing to invest further.

Kirkcaldy MSP David Torrance, whose constituency covers the two Fife yards, said the news would come as a blow to the workers and their communities.

He said: “BiFab is an integral part of this constituency and this news is hugely disappointing for everyone involved.

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“In 2017, the Scottish Government stepped in and saved BiFab from closure with an investment of £37.4 million through a combination of equity and loan facilities – this was converted to a 32.4% equity stake in BiFab.

“As a minority shareholder in the company the Scottish Government have worked to seek a solution which would allow for the delivery of the NnG contract in Scotland; however, under state aid restrictions they could not provide provide assurances to BiFab covering the supply of foundations for the 450MW Neart na Gaoithe offshore wind farm.

“I will continue to support the company, and its highly skilled workforce, in every way I can to ensure its place in the future in the offshore wind supply chain.”

GMB Scotland Secretary Gary Smith and Unite Scotland Secretary Pat Rafferty said: “It looks like the Scottish Government Ministers have walked away from our best chance of building a meaningful offshore wind manufacturing sector, and in doing so has extinguished the hopes of communities in Fife and Lewis who were banking their future prosperity on it.

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“It’s a scandalous end to a decade which started with promises of a “Saudi Arabia of Renewables” supporting 28,000 full-time jobs in offshore wind and now finishes in mothballed fabrication yards and no prospect of any contracts or jobs on the horizon.

“Both the First Minister and the Prime Minister promised a green jobs revolution but they didn’t tell anyone it would be exported, and it all amounts to broken promises to workers who needed these yards to be thriving instead of dying.

“The fabrication contracts for NnG, just like those on the Seagreen project, will be manufactured by the rest of the world. Two projects worth a total of £5 billion, requiring 168 turbine jackets to power our future, and not even one will be built in Scotland – everyone needs to let that sink in.

“This is what political failure looks like and people are right to be absolutely furious.”

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A Scottish Government spokesperson said that it could not legally give any more support to BiFab unless majority shareholders in the firm did the same.The spokesperson said: “In order to save BiFab from closure in 2017, and to support delivery of SSE’s Beatrice Offshore Wind project, the Scottish Government invested £37.4 million through a combination of equity and loan facilities and converted this to a 32.4% equity stake in BiFab. A loan facility of £15 million has also been provided to support working capital.

“The Scottish Government is a minority shareholder in BiFab. We have been working collaboratively alongside the BiFab Board, EDF and Saipem to try to find a solution which would allow for the delivery of the NnG contract in Scotland.

“The Scottish Government can only financially support BiFab, or any other commercial enterprise, in so far as a commercial investor would do the same. Without majority shareholder investment in the company or yards we have exhausted the options for what financial support we can provide legally.

“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 and we will be engaging with Trades Unions and local representatives in the coming days.”