Fears over future of Fife yards as major contract on brink of collapse

There are fresh doubts over the future of the BiFab yards in Fife - with a major contract for an offshore wind farm said to be on the brink of collapse.

The company was previously selected by developers of the Neart Na Gaoithe offshore wind project, off the coast of Fife, to provide at least eight foundation jackets.

But the deal is now uncertain as BiFab owner DF Barnes says the Scottish Government cannot "provide assurances" for the fabrication contract any longer.

A spokesperson for the company said: "BiFab can confirm that following a decision by the Scottish Government that it can no longer provide assurances for the NnG jacket fabrication contract, the company has informed EDF & Saipem that it can’t provide the required assurances for the work.

"BiFab recognizes that this makes an award of the contract very challenging.

"The company and its partners have worked extremely hard to secure this important contract.

"Unfortunately, the recent decision by SSE to award work to Asia over Scotland for their Seagreen project, combined with NnG project delays due to COVID-19, have contributed to this difficult decision.

"BiFab’s board of directors is now considering the path forward for the company."

EDF Renewables, which is one of the NnG developers alongside Saipem, says it has received the letter from BiFab, but that no final decision has been made.

BiFab has yards Burntisland and Methil, along with Arnish on the Isle of Lewis.

The Scottish Government says it will engage with local representatives and trade unions in the coming days.

A spokesperson said: "The Scottish Government can only financially support BiFab, or any other commercial enterprise, in so far as a commercial investor would do the same.

"Without majority shareholder investment in the company or yards we have exhausted the options for what financial support we can provide legally.

"We will continue to do everything possible to support the business while recognising the need for us to remain in line with State Aid regulations and we will be engaging with trades unions and local representatives in the coming days."

Unions claim the deal would have meant the return of 200 workers to the Fife yards.

Pat Rafferty from Unite says there has been "political failure":