BiFab must look to the future after a Scottish Government-brokered deal kept the engineering firm in business.
Kirkcaldy MSP David Torrance described Saturday’s news as “the greatest Christmas present possible” for the company’s 1,400 workers.
The announcement came after a week of fears that the prominent local employer was on the brink of going into administration due to cash flow problems.
However, following protracted negotiations with the Scottish Government and Dutch contractor Seaway Heavy Lifting, an agreement has been reached that will secure the short-term future of the company.
Urging the firm to protect its workforce going forward, Mr Torrance said BiFab must prepare itself to land lucrative contracts that would safeguard jobs.
“I was overjoyed when I heard the news on Saturday,” he said.
“I’ve been there myself and I was so happy for the workers.
“It’s the greatest Christmas present possible and I have to thank all of the parties for making it happen, particularly Keith Brown and Paul Wheelhouse.
“There are a lot of big contracts coming up and BiFab needs to be competitive to tender for them.
“There are North Sea oil and gas decommissioning projects and a lot of money there.
“If they can get everything in place for these contracts then the future is very bright for BiFab.”
BiFab’s future was thrown into doubt last week after details emerged of a dispute over payments with contractor Seaway.
Saturday’s agreement means the company, which produces equipment for the oil and gas sector, will receive payments to alleviate its immediate cash flow concerns, lifting the threat of administration.
The Scottish Government has also indicated that it will, if necessary, make available a commercial loan facility to BiFab.
It means the firm can now complete its order for products for the Beatrice Offshore Windfarm project.
First Minister Nicola Sturgeon applaudede the agreement, confirming the imminent threat to BiFab’s future had now been removed.
“All companies including BiFab have had to take difficult decisions to secure this outcome,” she said.
“While this deal lifts the immediate threat of administration, we recognise that there is a lot of work still to do to secure the long term position.
“Ministers will continue to work with BiFab, the trade unions and industry partners to identify ways to secure the long term future of renewables manufacturing on these sites.”
Kirkcaldy and Cowdenbeath MP Lesley Laird echoed the calls of Mr Torrance and urged BiFab to prepare for future contracts. She said: “It’s vital we now develop a longer-term plan for BiFab to ensure it can flourish in the renewable energy sector in the years to come.
“The £1.4bn Neart Na Gaoithe project was given a final green-light just earlier this month.
“BiFab must be in a position to be able to seize a role in helping deliver this infrastructure and retain its position as a standard-bearer of Scottish engineering excellence.”
