Short-term Deal Saves Wind Turbine Business

January 13, 2011 /

Skykon wind turbine plant at Argyll, Scotland will continue trading to fulfill demand for 30 wind turbine towers for a Lanarkshire-based wind farm.

German engineering firm Siemens has come to close a short-term deal with Ernst & Young administrators in an undisclosed price. Ernst & Young joint administrator Andrew Davison said the deal has been “a positive step forwards for the Campbeltown workers,” 130 in number, though the work is expected to end on February 2011. The 30 wind turbine towers will be used for a 350-megawatt onshore Clyde wind farm at Lanarkshire, Scotland.

The 130 workers will return on January 20 to the Machrihanish wind turbine manufacturing plant to start working on the ordered wind turbine towers which Siemens will install on 2012. Siemens targets to operate the $779.8 million Clyde wind farm thereafter.

Davison said Ernst & Young administrators are still negotiating with interested buyers that could strike a long-term deal for the wind turbine manufacturing plant.

“We are encouraged by this latest development, though the desirable outcome remains the successful sale of the facility,” said Davison.

Ernst & Young said eight companies have thus far expressed interest to buy the wind turbine manufacturing site.

Skykon’s mother company in Denmark has suspended October 2010 payments after it found itself in a “very cash-strapped situation” brought about by the economic crisis, resulting in its Scottish wind turbine manufacturing facility to fall into Ernst & Young administration.

 

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