The Scottish government is exploring all options available to save Burntisland Fabrications Ltd (BiFab), economy secretary Keith Brown said in the Scottish Parliament on Tuesday after the Scottish fabricator announced the filing of a notice of intention to appoint administrators.
BiFab is currently working on two contracts for the 588-MW Beatrice offshore wind farm which is being built off Scotland. Last year it got a GBP-100-million (USD 131m/EUR 111m) order from Seaway Heavy Lifting to produce 26 offshore jacket substructures for the wind farm. The jackets were to be delivered in two campaigns and BiFab now said one of the contracts is nearing completion, while the other is expected to run to the end of April 2018.
The company warned it is "facing a critical cash position as a result of a challenging situation regarding its ongoing contracts".
BiFab operates three facilities, employing about 1,400 people across them, which includes 251 permanent staff and 1,132 employed via agencies.
"We are seeking a rapid solution with our key stakeholders and the Scottish Executive to our current cash flow position and are hopeful that this can be achieved quickly to secure the future of the business and the 1,400 strong workforce," said managing director Martin Adam.
The economy secretary said the Scottish government is committed to doing everything it can to find a positive solution. There are ongoing discussions between the Scottish government, Scottish Enterprise and the company, he said. There have also been discussions with Seaway Heavy Lifting and shareholders of the Beatrice offshore wind scheme. The project is 40%-owned by SSE Plc (LON:SSE), while Copenhagen Infrastructure Partners (CIP) and China's SDIC Power hold 35% and 25%, respectively.