Scottish Government
Printable version E-mail this to a friend

New jobs for Fife

A £6 million deal to help a leading energy industry manufacturer expand its output and secure up to 400 jobs has been unveiled.

Energy Minister Jim Mather announced that BiFab has been offered £2 million of Regional Selective Assistance (RSA) plus a £4 million commercial loan from Scottish Enterprise to help finance a new 12,000 square metre facility at Fife Energy Park.

BiFab also announced today that Scottish and Southern Energy Plc has purchased a 15 per cent stake in BiFab for a total consideration of £11 million in a move which will further enhance the company's overall competitiveness. In addition to the equity stake, SSE has secured an agreement with the company for the supply of a minimum of 50 jacket substructures per annum commencing around 2014 for a period of 10 to 12 years.

During a visit to BiFaB at Fife Energy Park in Methil, Mr Mather said:

"The investment we're announcing today 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 can act as a driver to encourage further investment from other companies in the region, resulting in significant 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."

John Robertson, Managing Director at BiFab, stated:

"This is good news for Fife and for 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. The total investment for this project will be over £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.

"This investment will also ensure long-term employment opportunities for our workforce and the 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 Fife offers great opportunities for companies working in the alternative energy sector. We look forward to continuing our close working relationship with Fife Council and Scottish Enterprise and Governments as the company continues to develop."

Keith Winter, Head of Fife Council's Development Services, said:

"We are delighted at this announcement, which 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 Fife proposals, and this announcement further consolidates the strong position that 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.

"Fife has published a target to grow employment in the renewable energy sector to 2,000 by the year 2020. To date 600 jobs have been created in the sector in Fife, and we hope that this announcement will assist in taking us towards our long term target."

Traditionally involved in the supply of steel fabrications for the oil and gas industry, BiFab has diversified into the offshore wind, wave and tidal power industry - a move which has seen its annual turnover grow from £20 million to £90 million in four years. It is now a market leader in the manufacture of Jacket substructures for offshore wind turbines and the investment by both Scottish Enterprise and Scottish and Southern Energy will help the company more than treble its annual production to 130 structures per year, becoming a major supplier to the wider industry in Scotland.

The recently published Scottish National Renewables Infrastructure Plan recognised the importance of Methil as a key location to support the development of Scotland's offshore renewables market and the planned expansion by BiFab is a major first step in the delivery of the plan.

Energy Park Fife has already attracted £23 million of public sector investment from SE, Fife Council and the European Union to develop infrastructure on site and support for company growth.

BiFab currently has around 350 employees at their Methil facilities, producing 40 structures per year. The investment by both Scottish Enterprise and Scottish and Southern Energy will help the company more than treble its annual production to 130 structures per year.

SE has worked closely with BiFab since it was formed in 2001 by a management buy-out. The company is 60 per cent owned by JCE Offshore AB (Sweden) and 40 per cent by the local management.

Scottish Enterprise is Scotland's main economic development agency. Working in partnership with industry, academia and the public sector, SE aims to help make Scotland a place where business can thrive and key industries can be competitive. Its focus is to help businesses grow, encourage greater innovation and create the right conditions for companies to access property, markets and finance to increase productivity and increase Scotland's ability to compete internationally.


Related Information

Facing the Future...find out more