Engineering firm BiFab formally placed in administration

Scottish engineering firm BiFab has been formally placed in administration.

The company announced its intention to take the step 10 days ago after failing to secure any new contracts.

BiFab, which has steel fabrication yards in Fife and the Isle of Lewis, said it had been unable to compete with yards owned or subsidised by governments in and outside the EU.

Administrators from Deloitte said no redundancies were planned "at this stage".

They added that they were working with the Scottish government to attract a large engineering firm to take on the business.

BiFab was saved from administration three years ago, with the Scottish government taking a one-third stake and later bringing in a Canadian partner, JV Driver.

A £2bn deal to manufacture eight wind turbine jackets at its yards in Methil as part of the Neart Na Gaoithe (NnG) project collapsed last month, and the UK and Scottish governments said they had no legal route to provide further financial support to the company.

The Scottish government, which stands to lose up to £52m from the firm's collapse, said on Monday it would "continue to do everything in its power to support BiFab's workers and help forge a new future for the yards".

Joint administrator Gavin Park said BiFab had faced tough trading conditions for several months.

He said: "Despite the efforts of management, shareholders, and stakeholders, with no immediate revenue opportunities the business has now unfortunately entered administration.

"We are reviewing the company's assets as part of our assessment of the business's prospects.

"There is a strong pipeline of future wind contracts and projects across the UK, including in Scottish offshore waters.

"Through its long-established expertise, which is supported by sites in Fife and on the Isle of Lewis, BiFab would be well positioned to serve these."

In a statement, Scotland's Economy Secretary Fiona Hyslop said: "We are hopeful that a buyer willing to invest in the business will be found and we will work closely with administrators and trade unions to secure the best possible outcome for the workforce, the yards and local communities.

"We have already had requests for information from interested parties and will share these with the administrators to explore all of the options available."