Giant step forward with £45m investment and 200 jobs in the pipeline

Published on Thursday 26 March 2009 21:07

THE future seemed bleak a month ago but ambitious plans announced yesterday could see a wind turbine maker become a world leader, creating 200 jobs.

A 45 million investment package is expected to transform the troubled Kintyre economy into an area with almost full employment.

The Vestas wind turbine manufacturing plant at Machrihanish, near Campbeltown, is being taken over by a subsidiary of another Danish firm, Skykon.

The deal will save the 100-strong workforce, with plans for it to be expanded to more than 300 over the next two years.

Another 150 indirect spin-off posts will be created among local supply chain companies, while expanding the plant for a new generation of off-shore and on-shore wind turbines will mean a further 400 construction jobs.

Alex Salmond, the First Minister, visited the site yesterday and said: "This is going to transform the economy of one of the remote parts of Scotland which has had most economic difficulty, particularly in harsh economic times."

Argyll and Bute has the second highest ratio of unemployed in Scotland with 31 people chasing every job vacancy, compared to a Scottish average of ten

Mr Salmond said: "We can look forward to virtual full employment on the Mull of Kintyre.

It creates high-quality and skilled employment in the local area, and gives Scotland a lead in the development of clean, green energy technology – putting our nation at the forefront of global developments."

The deal was confirmed as plans for some wind farms in England were called into question after Spanish power giant Iberdrola announced cuts to its wind power investment in Britain.

But Mr Salmond said the Campbeltown expansion was going ahead with an eye to a "large and expanding" market for off-shore-and on-shore turbines.

"Individual companies are going to take individual decisions," he said. "Within the next half-century, we have the potential in Scotland to produce up to 60,000 megawatts of primarily off-shore renewable power."

The 12 million Vestas development was opened in 2002 at the former RAF base in Machrihanish. The 100,000sq ft factory was secured against international competition with the help of 9.4 million of public funds.

But it shut last year when Vestas said the turbines it was making were not big enough for the international market. The Skykon deal includes private capital investment of 35 million, through its subsidiary Welcon Towers, to introduce new manufacturing techniques and equipment.

Scottish Development International is also providing a grant of 9.2 million and Highlands and Islands Enterprise (HIE) about 500,000 in training support.

Jesper hlenschlger, Skykon's chief executive, said: "Scotland is rapidly becoming the most positive and the most interesting renewable wind power market in Europe.

"The Scottish Government and local energy producers are now clearly focused on wind power and it is expected that up to 3,000 megawatts of wind energy will be installed in Scotland over the next four years."

Kenny Jordan, of Unite, said the news was "a nugget of hope in a sea of despair."