Hope that 260 jobs can be saved after BiFab rescue deal

HUNDREDS of jobs could be saved after a rescue deal was struck to prevent the closure of a Scottish business.

A Canadian company has agreed to buy engineering firm BiFab, which was set to lose 260 staff by the end of next month.

Full closure of its yards – in Methil and Burntisland, both Fife, and Arnish on Lewis – would follow a month later.

But the Scottish Government yesterday announced that Canadian firm JV Driver, through its subsidiary DF Barnes, would acquire BiFab.

The Scottish Government will also take a formal shareholding in the company.

Ministers had offered BiFab a £15million loan in November. Economy Secretary Keith Brown said yesterday he would ‘convert that loan to a minority equity stake in the new company’.

He said the shareholding would not exceed 38 per cent and said the loan has been made ‘on a fully commercial basis’.

Mr Brown told MSPs: ‘BiFab can be a thriving business, supporting Scotland’s offshore renewables and oil and gas industry as well as competing internationally for work. We’ll work with the company to achieve that success.

‘I am confident that this agreement will deliver for BiFab’s future.’

BiFab faced administration last year before the Government offered its loan.

JV Driver is one of Canada’s largest independently owned industrial construction firms. Subsidiary DF Barnes has been a consistent employer in the oil and gas, fabrication and marine industries for more than 80 years.

Scottish Labour economy spokesman Jackie Baillie said: ‘This is very much welcome news about BiFab. Everyone wants this deal to work and we salute the efforts of the workers for their unstinting campaign to save the yards.

‘Redundancy notices still hang over a number of core workers and it is essential the new owners now lift this threat to retain skilled labour.

‘It is also essential there is a continuing role for trade unions, not just in terms of recognition agreements but also a seat at the table to help secure the future of the yard.’

Announcing the rescue deal, First Minister Nicola Sturgeon said: ‘We are delivering on the commitment I made last year that we would stand by BiFab and work to secure a longterm future for the company.’

She added that the commitment of DF Barnes to securing a new future for the business was ‘hugely positive’.

DF Barnes chief executive Jason Fudge said: ‘We are delighted to join with the employees of BiFab and the people of Scotland to ensure the continued growth of BiFab for the benefit of all.’

‘Salute efforts of the workers’