Rescue hope for ailing wind turbine company

Published on Thursday 11 November 2010 14:32

A RESCUE package is being considered to try to save a troubled wind-turbine manufacturer.

First Minister Alex Salmond told MSPs the Scottish Government had hosted a meeting of interested parties earlier this week "in an attempt to be of assistance in assembling a rescue package".

However, he cautioned that any such deal would depend on a "number of agreements".

The future of wind-turbine manufacturer Skykon was thrown into doubt after the company announced last month it was suspending payments to creditors.

The firm had acquired the Vestas plant, near Campbeltown, Argyll, which employs about 100 people, last March.

But recently, the business disclosed it had found itself in a "very cash-strapped situation" in the wake of the global financial crisis.

Highlands and Islands MSP Jamie McGrigor raised the issue with Mr Salmond at First Minister's Questions in the Scottish Parliament yesterday.

The Conservative politician said the Skykon situation, together with the building services firm Rok going into administration, could lead to an "unemployment meltdown" in the Campbeltown area.

He asked Mr Salmond what ministers were doing to prevent this and what was being done to "ensure continuity of Skykon, the only wind tower producer in Scotland".

The First Minister told him Skykon had "encountered financial problems".

He went on: "The Scottish Government hosted a meeting of interested parties this Tuesday in an attempt to be of assistance in assembling a rescue package.

"That depends, of course, on a number of agreements, particularly of Skykon financiers."

He added that "contingency plans were also being prepared".

The First Minister also said the Scottish Government was trying to "minimise the economic damage" from national construction group Rok going into administration.