BiFab not yet in administration, according to reports

It is understood that company directors have been in talks with key stakeholders to ‘find solutions’ that will

allow the firm to continue trading and overcome what it described as a “temporary difficult position.”

It is believed the issue involves two major contracts for the SSE-led Beatrice Offshore Wind Farm in the Outer Moray Firth.

It is reported the board has moved to file a notice of intention to appoint administrators in order to protect the company from creditor claims.

At the weekend, the group’s two main unions – GMB and Unite – said they were concerned for the future of the workers.

The Scottish Government and Fife Council have also been urged to step in to help BiFab amid fears the business is in serious financial difficulties.

It employs around 440 people at two yards in Burntisland and Methil and is one of the largest fabricators for the energy industry in Scotland. It also operates out of the Isle of Lewis.

However, it is understood the total headcount, including permanent employees as well as staff employed through agencies, could be around 1,400.

The situation has caused widespread concern among politicians.

Lesley Laird, MP for Kirkcaldy and Cowdenbeath, said: “This is very sad and disappointing news.

“BiFab is a key strategic player in Scotland’s renewable energy sector and has built up an enviable reputation for carrying out this type of work.

“Moreover, BiFab is a significant employer having provided work for thousands of highly skilled workers at its yards in Burntisland and Methil for nearly two decades.

“The timing of this development is particularly cruel given that the Inch Cape, Neart na Gaoithe, Seagreen Alpha and Bravo projects were only this month given a final green-light, thereby ensuring a massive future market on BiFab’s doorstep.

“If the Scottish Government and Scottish Enterprise are serious about Scotland having a stake in the renewables sector they cannot stand by and do nothing.

“They must step in and come up with a rescue package in addition to providing support which helps develop a longer term strategy for the company and the industry.”

Councillor Ken Caldwell, who chairs Levenmouth’s local area committee, has written to the Scottish Government Aurging it to step in. And he has also made the same call to senior officers within Fife Council to do what they can avoid any devastating closures.

Cllr Caldwell SNP member for Buckhaven, Methil and Wemyss villages, said: “The loss of Bifab would be a huge blow to the local economy, not just financially, but it would hurt the moral of the community.”

He described the local yard as “the cornerstone of the hopes for a better future for the area.”

Cllr Caldwell added: “Levenmouth is an area with many challenges. It has 23 datazones of the 20 per cent most deprived areas in Scotland, according to the SIMD, an increase from 19 in 2012.

The adjacent areas of Kirkcaldy and Glenrothes also show an increase, up from 21 to 23 and from 11 to 16 respectively. Fife Council and Scottish Enterprise have invested a lot of time, energy and money in developing this facility, recently installing an additional quay to improve the throughput of the site.

“They have also recently built a Low Carbon Industrial site nearby to encourage other companies to the area to provide support to the Energy Park, who do not need to be located in the Energy Park.”

Claire Baker MSP said it was ‘‘vital’’ the Scottish Government stepped in amid fears any slide into administration would also impact badly on a number of suppliers.

Shadow Cabinet Secretary for Economy, Jobs and Fair Work Dean Lockhart MSP (Mid-Scotland and Fife) said: “This is very concerning news for not only the hundreds of employees at BiFab, but also for the Fife economy as a whole.

“BiFab has been a success story and one of Scotland’s leading job creators in the energy sector.

“I urge the Scottish Government, worker representation bodies, stakeholders and BiFab to engage constructively in discussions to find a solution as soon as possible.”