AN oil fabrication yard is set to increase its workforce with a major expansion and upgrading programme. Lewis Offshore, based at Arnish, near Stornoway, is investing #725,000 in upgrading its main workshop and constructing a paint shop, enabling it to extend its range of contract work. The development, backed by a #217,500 package from Government jobs agency Western Isles Enterprise, is set to provide 25 more jobs at the yard, which currently has 350 workers.

The Arnish fabrication facility was set up in 1974 but closed in 1988 by then owners, Dutch firm Heerema. It re-opened in 1990 when a team of former managers, led by Mr Peter Webster, set up Lewis Offshore Limited. Yesterday, Mr Webster said: ''This expansion will greatly enhance our ability to undertake a variety of work which is increasingly required as part of the fabrication process.''