Energy Minister Jim Mather announced that BiFab has been offered £2m of Regional Selective Assistance (RSA) plus a four million pounds 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 pounds 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.
Traditionally involved in the supply of steel fabrications for the oil and gas industry, BiFab has successfully diversified into the offshore wind, wave and tidal power industry - a move which has seen its annual turnover grow from £20m to £90m in just 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.
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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 £14m and we plan to have the new factories fully operational by late 2011."
(GK)
