Skykon suspending payments

[weetoonboy]

Alex Salmond will sort it all out when he comes down mid week....

The same Alex Salmond who is on his way to London to save the Lossiemouth Airbase that if he had his way he'd have to close down anyway.

More than positive an independant Scotland could not afford to maintain an Airforce. Or a Navy. Or an Army.

But 30,000 votes is an awful lot in an election year.

He should be in Campbeltown. At least he would be showing support for something he actually believes in!

[D.H]

http://www.bbc.co.uk/news/uk-scotland-glasgow-west-12172400

Deal to keep Skykon Campbeltown turbine factory open

A deal has been struck to keep open an Argyll-based factory which makes towers for windfarms while efforts continue to safeguard its future.

The future of the plant at Machrihanish has been in doubt since Danish parent company, Skykon, filed for bankruptcy.

This forced the Campbeltown operation into administration last week with staff told not to turn up for work.

Administrators Ernst and Young have now agreed a deal with engineering firm Siemens to resume production.

Siemens will provide funding for an outstanding order of 30 wind turbine towers for a windfarm near Abington in South Lanarkshire.

Staff at the company were informed of the breakthrough at a meeting with the administrators on Wednesday morning.

All 130 employees will return to work on Thursday and wage arrears will be met.

“Start Quote

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

End Quote Andrew Davison Joint administrator

Andrew Davison, joint administrator, said: "We were mindful of the uncertainty facing staff at the Campbeltown facility and are therefore pleased to have concluded this arrangement in such a short timescale."

The administrators are continuing to work through expressions of interest in the site and are currently providing further information to interested parties.

Mr Davison added: "We are encouraged by this latest development, though the desirable outcome remains the successful sale of the facility."

The Skykon plant on the site of the former RAF Machrihanish base is an important part of the area's economy and one of its biggest private sector employers.

Skykon took over the operation two years ago after the previous owners - another Danish company Vestas - decided to close it. First Minister Alex Salmond visited the site to announce it had been saved.

The hope was that Skykon would eventually employ some 400 people on the site in what would have been a massive boost to the isolated peninsula.

The Scottish government hopes to see Scotland develop its potential to become a world leader in renewable energy and operations like the one at Machrihanish are an important part of this ambition.
Financial problems

Windfarms or tidal energy projects do not normally sustain many jobs directly. But there are other ways in which the Scottish economy can benefit - for instance, high end research and development jobs or manufacturing sites like the one at Machrihanish.

Work has been underway around Campbeltown to help make the most of the potential of the operation - for instance, widening roads to make it easier to transport the completed turbine towers.

Skykon at Machrihanish had a healthy order book but was undermined by serious financial problems at its Danish parent company.

A recent analysis by the GMB union claimed there were 13 unemployed people for every job vacancy in the Campbeltown area.

However others take a more optimistic view of the area's economic outlook. Tesco intends to build a massive new store on the site of the existing Campbeltown Creamery which, in turn, is due to be replaced by a state-of-the-art facility.

A local business intends to run a small-scale ferry service to Northern Ireland in 2012 after years of effort to restore a publicly-subsidised car ferry service failed.

[bakbjerg]

Excellent news

[bill]

A big boost in the short term.Hopefully a buyer can be found to safe guard the work force for the long term.

[Kevin Mc]

I feel for the Skycon workers seemingly having to go through all this stress every few years.

Good news though. Good for the workers and the town.

[Swanseajock]

Although I don't want anyone to lose their jobs, and I hope that the folks working there are all right, I've said it before and I'll say it again. The renewable energy companies (ie wind farms) will not continue without huge subsidies. If they had to compete on an even playing field they are so expensive they would fail. Do we have to continue subsidising the green energy revolution for ever? As stated in the previous post, the workers should not have to go through this every couple of years, but they will, because there will come a time when the subdidies stop and where will that leave green energy:?:

[weetoonboy]

Do we have to continue subsidising the green energy revolution for ever? As stated in the previous post, the workers should not have to go through this every couple of years, but they will, because there will come a time when the subdidies stop and where will that leave green energy:?:

Im afraid we do. Oil and Gas is a finite resource this means one day it will run out. Now it doesnt matter how you look at it but somebody has to pay for the development of these technologies. You might pay for it through your taxes or your children will have to pay for it through theirs. If the funding does not come from Government then the cost of the development will be added to your monthly energy bills. Its a pay-pay situation. Capitalism ensures that.

Britain, although it does have its own Oil and Gas fields, has to look to the future and ensure our Energy Security. As the black gold runs out we dont want to be dependant on other nations (such as Russia) for our fuel sources. OPEC the body responsible for the iterests of the major oil producing countries can set the price of oil by reducing its production, at whatever they like, and I would say with certainty that the UK, US, China, Europe, Japan, all make moves towards zero carbon energy within the next 20 years, and that I'm afraid that means that the subsidies will never stop.

Electric Cars are to become ever more the vehicle of choice and we have to find ways of powering those too. If all the cars in Britain today were converted to Electric-power tomorrow the grid woud fail.

Britain and the world needs to ween itself off of Hydrocarbons, this goes without saying, and it can only be done through subsidy.

Suck it up. Lets hope Campbeltown rides the wave forever more, and leads the world in future developments.

[Ship called Dignity]

Does anyone know how long the Siemens order will take to complete? In other words, how long does this give some relief to the workers and their families? And what is being done in the meantime to ensure it is for the long term future and not short term again?

[SKYKON EMPLOYEE]

ship; their is a myth circulating Campbeltown at the moment that Skykon are to complete the Siemens order for the Clyde, this is not true. Siemens have allowed us back to work for the moment to fabricate, paint and fit-out the steel we currently have at the facility. At the moment the fabrication side have three weeks work at most, paint side possibly four weeks and fitting out have possibly five weeks. Siemens are also assessing our performance during this period with a view to deliver the remainder of the steel, which then would allow us to complete the order, and in turn give us essential time for a buyer to come in. But we were told that our situation will be reviewed on a weekly basis, and that Siemens could withdraw their steel at any time. Not ideal but a huge gesture by Siemens.

swanseajock, not sure if you are local but your right the workers shouldn't have to go through this every couple of years, but unfortunately we live in Campbeltown where unemployment is at an all time low. I will quite happily squeeze every week of employment out of Skykon because I have nothing else to turn to. In terms of government subsidies, refer to weetoonboy's post.

[Kintyre Forum News]

So who is going to raise the profile on this? Something needs to be done now.

Interesting article in the excellent For Argyll website correctly highlighting that action is needed now and not next week or the week after.

http://forargyll.com/2011/01/emergency- ... n-kintyre/

Skykon, the wind turbine tower manufacturer at the Machrihanish plant in Kintyre, was, of course, forced into administration , the victim of cash flow problems directly linked to the recession following the collapse of the banks.

That is now history.

The pressure is to find a new operator to take over the plant in time to capitalise on the completion of an order it has on its books – the Siemens Clyde order.

We had understood from industry insiders that there was a window of 5-7 days within which action had to be taken – the trouble being that action, as opposed to discussion and the preparation of plans, is not a major feature of government at any level.

We missed a Press Release issued on Wednesday and understand that an agreement has now been made with Siemens that will see production resume at Skykon Campbeltown Ltd, starting yesterday with all 130 employees back at work, wage arrears met, and the Siemens contract to be completed.

While it is being said that this agreement ‘sees Siemens provide short-term funding for an outstanding order of 30 wind turbine towers’ – that are already in situ at Skykon Campbeltown and are destined for the Clyde wind farm near Abington in South Lanarkshire, there is much it does not say.
What is not known

There is no timeline given for the completion of the Siemens contract and the wording of the Press Release, referring to the 30 towers remaining in the order as being ‘already in situ at Skykon Campbeltown. Does this mean that the towers are already fabricated?

We understand that Scottish Enterprise. Highlands and Islands Enterprise, Scottish Development International and Argyll and Bute Council have all been involved with the administrator in securing this temporary put-by arrangement – and it is unlikely that they will have kept their hands in their pockets.

What is also not known is whether the continuation of the contract is being used to see Siemens – and end customer SSE, experience no further difficulty in delivering the giant Clyde wind farm (a serious consideration) – or whether it is also being used to secure a buyer for the plant. One thing is certain – the closer to the end of delivery on the Siemens order this matter runs, the smaller the chance of securing a new operator.

Siemens needed the turbines. Skykon were the most likely to be able to deliver them in time, given the latitude to complete. SSE needed Siemens to deliver the installed turbines. The Skykon employees needed their wage arrears and as much continuing work as possible – and the Scottish Government needed them to get that easement, with an election coming up.

We warmly congratulate all concerned for their efforts in getting this temporary stay – but this is itself a spur to redouble those efforts and get a buyer in place as soon as possible.

The administrator at Skykon is competent, engaged and respected – but is being paid massive daily fees.

Prompt action is therefore not in the administrators’ financial interests. The longer the matter takes the more fees are earned. Kintyre cannot afford to be prey to such interest.

Time is not on the side of the plant unless the securing of this order is a live commercial asset to attract investors. There will not be more orders on the books without a new company in place to pitch for and deliver on them.

Without orders in the books, what attraction is there in an empty plant and a track record of failure?

We understand that there is a serious trade investor interested in taking over the plant but who does not want to pay as much for it as the administrator will be compelled to ask, charged with getting best value for the government.

This is a situation where private sector values need to be prioritised in the longer interests of the local economy of Kintyre.

The administrators at Skykon, Ernst and Young, are a wealthy major company. They may want but do not need to prolong matters at Machrihanish for their own financial gain.

The government will be afraid not to get best value for the plant. In this situation, that really dose not matter.

What matters is the future of Kintyre – and in the renewables industry, in which the area is so well placed to play a major part – if it can get across the threshold of entry period survival.

This is the only wind turbine tower manufacturing plant in Scotland. It is a national asset and it has serious room to grow, if its operations can only be sustained.

SSE took a 15% share in BIFAB at Burntisland in order to ensure that aspect of its supply chain in the windfarm sector. It is not inconceivable that it might take a share in the Machrihanish plant for the same reasons.

The operation at Machrihanish will need knowledgeable leadership from the industry.

We understand that Skykon, which has been doing all it can to assist and has been bringing the plant to the attention of a range of investors – has offered short term input into stabilising the operation and progressing the Siemens order.

That also looks like an offer not to cavill at.

This matter will be a sharp test of just how business savvy the Scottish Government and the enterprise agencies actually are. There is a time for action and this is it. Can they deliver?

[Kintyre Forum News]

Council and First Minister hopeful about Skykon future

Councillor Dick Walsh and First Minister Alex Salmond remain positive about the future of employment at Skykon’s Campbeltown site.

That’s the news from a meeting held between the First Minister and council officials, held on 12 January at the Scottish Parliament, to discuss the future of the turbine manufacturing plant at Macrihanish.

Councillor Walsh was joined at the meeting senior council officers Sally Loudon, chief executive, Sandy MacTaggart, director of development and infrastructure and Robert Pollock, head of economic development. Also present at the meeting, called by Councillor Walsh, were Tom Lamb, head of energy at Scottish Development International and Douglas Cowan of Highlands and Islands Enterprise.

Just before the meeting it was announced that administrators working on behalf of Skykon had gained agreement with Siemens for an existing order to remain at the plant. The order conformation allowed workers to return to the suite and keeps the plant operational in the short term.

During the discussions Councillor Walsh raised his concerns about the uncertainty of the plant’s future and the potential impact any closure would have on the Kintyre economy. The First Minister assured those present that the matter has the highest priority in Scottish Government.

Councillor Walsh said, “It’s good to know Campbeltown’s economic future and Skykon have the backing of the Scottish government. Argyll and Bute Council has a strong track record when it comes to the promotion and development of renewable energy. Campbeltown can make a significant contribution to Scotland’s wider economic development and renewable energy ambitions. The council will continue to support these ambitions to make them a reality.”

[weetoonboy]

On Reporting Scotland today and http://www.bbc.co.uk/news/uk-scotland-g ... t-12241833

Spanish firm Gamesa to create 300 Scots turbine jobs

Spanish firm Gamesa to create 300 Scots turbine jobs Up to 300 jobs could be created in Glasgow and Dundee by Spanish wind turbine manufacturer, Gamesa.

The company wants to set up its centre for offshore engineering in Glasgow, creating up to 130 jobs.

It is also in talks to establish a logistics and manufacturing centre in Dundee, which could add up to 170 jobs.

News of the investment, which could be worth up to £40m to the Scottish economy, was confirmed at Holyrood by First Minister Alex Salmond.

The announcement by Gamesa follows moves by Scottish and Southern Energy, and another Spanish firm, Iberdrola, to choose Glasgow as their centre for design and co-ordination of offshore wind farms.

Ignacio Gálan, chairman of Iberdrola, which has a 20% stake in Gamesa, said: "Gamesa's announcement today boosts Scotland's role as a centre for the expanding offshore wind industry in the UK and abroad.

"We recently established our global headquarters for offshore wind projects in Glasgow, so the city is now very well placed to be a world leader in developing and delivering this new technology."

Questions have to be asked whether its to the detriment of Skycon Machrihanish? Or Perhaps a possible buyer for Skycon Machrihanish?

[weetoonboy]

Alex Salmond was rejoicing in the cheer of MSPs in the chamber of Scottish parliament,as he announced the new jobs to be created in Glasgow and Dundee. Has Machrihanish been betrayed by the SNP leader or does he know of something positive for the factory?

The Glasgow jobs(130) are design and engineering so dont really impact on us, but the Dundee jobs(170) are Manufacturing. Theoretically the parliament may have been cheering the net gain of 40 jobs.

Siemens is also opening a manufacturing plant for offshore Turbines in Hull.

If Skycon Mahrihanish is for closure there should be jobs out there for the workforce. Downside being that the town will lose its best skilled workers and the income they generate for others.

[zeus]

Looks like the workers are just there to finish the Siemens order as I can't see anyone else placing an order at machrihanish with so much uncertainty about the future of the factory

[bigchang]

http://www.facebook.com/l.php?u=http%3A ... nt&h=106ae


another kick in the B*LLS for us.

Dundee or Hull?


would rather stay HERE!!!!!