A £6 million deal has been struck to help a leading Fife energy industry manufacturer expand its output and secure up to 400 jobs.
On a visit to BiFab, at the Fife Energy Park in Methil, Energy Minister Jim Mather announced that the firm has been offered £2 million of Regional Selective Assistance and a £4 million commercial loan from Scottish Enterprise to help finance a new 12,000 square metre site.
BiFab also revealed that Scottish & Southern Energy had taken a 15% stake in the company for £11 million in a move which will further enhance its overall competitiveness.
SSE has also secured an agreement with BiFab to supply a minimum of 50 jacket substructures a year starting around 2014 for 10 to 12 years.
BiFab was traditionally involved in the supply of steel fabrications for the oil and gas industry, but has diversified into the offshore wind, wave and tidal power industry, raising annual turnover from £20 million to £90 million in just four years.
It is now a market leader in the manufacture of jacket substructures for offshore wind turbines and the latest investment will help the company more than treble its annual production to 130 structures a year, becoming a major supplier to the wider industry in Scotland.Leading positionMr Mather said, “The investment anchors BiFab to Fife Energy Park and secures a major economic boost for the region. It also underlines Scotland’s leading position in the global development and deployment of offshore renewable energy generation.
“BiFab is an excellent example of a proven company with expertise in deep water oil and gas exploration, diversifying into the offshore renewables sector.
“The new manufacturing facility will secure hundreds of jobs and…encourage further investment from other companies in the region, resulting in major new supply-chain opportunities.”
Lena Wilson, chief executive of Scottish Enterprise, added, “BiFab is operating at the heart of Scotland’s globally competitive renewables sector, and this is a perfect example of where one growth-oriented company can potentially have a huge impact on the Scottish economy.
“By putting resources into big opportunities like this, we can grow our offshore wind capabilities by supporting the development of a robust supply chain for the renewable sector, assist ambitious Scottish companies and play our part in supporting the Scottish Government’s drive to create a low-carbon economy.”
BiFab managing director John Robertson said the deal was “good news” for Fife and Scotland. “We are currently world leaders in the design and supply of jacket substructures for the offshore wind sector and this investment will help our plans to create one of the best manufacturing facilities in Europe,” he said.Investment”Total investment for this project will be more than £14 million and we plan to have the new factories fully operational by late 2011.
“The UK round three projects will not commence until 2014-15. However, today’s announcements will allow BiFab time to prepare and to ensure we are ready to deliver a competitive high quality product with full scale manufacturing for the offshore wind industry.”
Mr Robertson added, “This investment will also ensure long-term employment opportunities for our workforce and recruitment of additional personnel as orders increase. We are investing in the future and our commitment to training and the employment of apprentices from Fife.
“The Energy Park offers great opportunities for companies working in the alternative energy sector.”
Fife development services head Keith Winter said, “We are delighted at this announcement, that brings together two of the most important European players in the renewables sector.
“Fife Council has worked closely with Scottish Enterprise and BiFab in taking forward the Energy Park proposals. This announcement further consolidates the strong position Fife enjoys within the industry.
“We will continue to explore opportunities to enhance collaboration with both SSE and Bifab that will support the growth of this dynamic growth sector.”
MSP Tricia Marwick said, “I am absolutely delighted BiFab is to receive £2 million from the SNP Government which demonstrates its commitment to BiFab and the Methil area.
“BiFab is at the forefront of renewable energy and this award will allow their facility here to expand.”