TWO of the three troubled BiFab yards have been bought out of administration.
Burntisland Fabrications (BiFab), which has yards in Burntisland and Methil in Fife and one on the Isle of Lewis, went into administration at the end of last year after Scottish Government ministers ruled out nationalising the company – pointing to state aid rules.
Harland & Wolff (Methil) Limited, a subsidiary of InfraStrata Plc, has now taken on the Methil and Lewis sites in an £850,000 deal.
BiFab entered administration in December, two years after a deal in which Canadian firm DF Barnes acquired the business for just £4.
The Scottish Government, which became a minority shareholder in BiFab, went on to invest £37 million in it. The SNP has been accused of 'mismanagement' of the country's manufacturing industry.
READ MORE: BiFab Fiasco: Scottish Government told to delay contracts
John Wood, chief executive of InfraStrata, said: “With this acquisition we now have a footprint in Scotland, which is the hotbed for major wind farm projects as well as for shipbuilding programmes.
“I wish to warmly welcome the personnel whom we have taken on at Methil and Arnish and I am confident that we will turn these facilities into highly successful businesses that generate jobs and investment into their local economies in due course.”
Economy Secretary Fiona Hyslop said: “This is a welcome development for the future of the workforce. The Scottish Government’s priority has been to support BiFab’s workers and I welcome the announcement that a buyer has been found.
“The workforce has an important role to play in the future of manufacturing in Scotland and I look forward to working with the new owner as it forges a new future for the company.
“This is welcome news for the local communities in Fife and the Western Isles.
“The Scottish Government will also engage with Forth Ports, the owner of the Burntisland yard, to help secure the best possible outcome for that yard.”
Trade unions welcomed the deal, but called for more support for the offshore wind sector – in which the BiFab yards had previously been involved.
Unite Scotland secretary Pat Rafferty and GMB Scotland secretary Gary Smith said: “We have always believed that the BiFab yards, and indeed yards and ports all over Scotland, are uniquely placed to capture the benefits of the offshore wind sector.
“However, the story so far has been one of government failure – thousands of jobs and billions of pounds have been outsourced around the world when Scottish communities should have been benefitting from these contracts.
“Now the Scottish and UK governments have been given a reprieve and they need to step up and support the new ownership.”
STUC general secretary Roz Foyer said: “We will continue to press for a solution for the Burntisland yard which is not included in this deal.
“This is just the start of our battle for a plan for jobs in manufacturing and renewables in Scotland.”
Scottish Labour economy spokesperson Alex Rowley added: “This is very welcome news and will come as a relief to many workers who have fought tirelessly alongside their unions to keep these jobs.
“It is of the upmost importance that the new employers engage with the trade unions and ensure that Fair Work values underpin the futures of the sites.
“Scottish Labour will continue to fight shoulder to shoulder with the workforce for the high-skill, high-pay jobs that Scotland so badly needs. We also believe the yard at Burntisland has a future and will work to get that yard up and running as well.”
He added: “The SNP’s mismanagement of our manufacturing base cannot be overstated and the damage done to so many communities across Scotland is plain for all to see.
“Scottish Labour urges both the UK and Scottish governments to work together and support the sector to develop the jobs that we need to kickstart the economy and ensure a fair transition to green energy.”
Scottish Liberal Democrat leader Willie Rennie said: "The purchase of the BiFab assets at Methil and Arnish could be good news for workers but we need to be cautious until we see the full plans, investment and commitment from the new owners Infrastrata. Given sight of those plans we of course stand ready to support the recovery and growth of these infrastructure assets.
“The potential is great with all the new windfarms on the verge of construction off the shores of Scotland but the yards need significant investment to make them competitive with yards from the far east.
"And the questions from the Scottish Government remain. Just how much of its £52.4million investment in BiFab will be recouped as a result of this sale? The BiFab saga has been yet another example of the Scottish Government’s cack-handed management of a company that had so much potential squandered."
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