Fife firm almost went into administration three times

● Bifab had to have a deal, says MSP Keith Brown

0 Burntisland Fabrications workers marching to the Scottish Parliament in Edinburgh last week as talks to save the yard took place Troubled Fife engineering firm Bifab was on the brink of administration three times last week as intensive talks to secure its future took place, Scotland’s economy secretary has revealed.

MSP Keith Brown said the agreement reached on Saturday lifting the threat of administration would secure work until next April.

Efforts are underway to identify other contracts and secure the long-term future of the

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company, with work to continue on the existing deal for the Beatrice Offshore Windfarm situated in the Outer Moray Firth.

A financial package to complete the contract has been provided by Seaway Heavy Lifting, SSE and the windfarm’s partners JCE Offshore.

The Scottish Government has also indicated that, if necessary, it will make a commercial loan facility available to Bifab.

Mr Brown said: “What the deal we have done allows us to do is to see through the contract right through to April next year and keep people employed to do that.

“What we have to do now, and we’re actively involved in this with some very promising early signs, is make sure they can win further work for the yard, that we can see additional capital investment going in and further training of the workforce.”

Burntisland Fabrications Ltd (Bifab) has a workforce of 1,400 employees, contractors and subcontractors at its yards in Burntisland and Methil in Fife,and Arnish on the island of Lewis.

The company, which makes equipment for the oil and gas industry and the renewable energy sector, filed a notice of intention to appoint administrators a week ago.

Mr Brown said: “During the week we three times had to stop Bifab from going into administration. They had to have a deal.

“They could not sustain a situation where they had people working without wages, so they were on the brink three times last week and we’ve managed to avoid that and also now to give added certainty that these contracts will be seen through until April.”

Under the agreement, Bifab will receive payments to alleviate immediate cash flow issues.

Tradeunionsgmbandunite praised the role of the Scottish Government and First Minister Nicola Sturgeon in brokering the deal. Ms Sturgeon said there was still work to do “in the long term” to guarantee Bifab’s future.