Wind Turbine Manufacturer Calls in Administrators from Ernst & Young
Administrators from Ernst & Young will assess the immediate trading of Skykon, a wind turbine manufacturer in Argyll, Scotland which has fallen into administration after its mother company suspended compensation to creditors being in a “cash-strapped situation.”
The wind turbine manufacturer has already informed its more than 120 employees in a meeting January 5 at Machrihanish, Campbeltown with Ernst & Young administrators that filing for redundancies is being eyed while buyers are being sought, which would also compel them to take a leave without compensation. Only six employees of the wind turbine manufacturer will be left to help the administrators.
Ernst & Young administrator Andrew Davison said that at present he and his colleague Colin Dempster are looking into the financial position and order book of Skykon as part of their assessment for the wind turbine manufacturer’s sale. Davison disclosed that buyers are already showing interest in the wind turbine manufacturer.
The past two years have been tough times for the wind turbine manufacturer.
In August 2008, the wind turbine manufacturer’s initial operator Vestas planned to close down production of the site when it was losing money. The announcement for disclosure came when Vestas said its demand was up 67 percent in 2007.
However, in March 2009 the planned closure of the wind turbine manufacturer was suspended after Skykon agreed to buy the facility. Skykon’s decision came after the government of Scotland vowed to shell out £9.2 million in financial assistance to equip the company for massive production to meet its target of taking the lead in renewable energy industry. But only £2.4 million was actually paid.
Now the wind turbine manufacturer is ailing, threatening the more than 120 jobs at its Machrihanish site.
The Highlands and Islands Enterprise is cooperating with the administrators to negotiate with potential buyers of the wind turbine manufacturer.