SSE buys 15% BiFab stake

12th Apr 2010 11:18

Scottish and Southern Energy (SSE), has bought a 15% stake in Burntisland Fabrications (BiFab) for a total consideration of £11m. In addition to the equity stake, SSE's renewable development division has secured an agreement with BiFab for the supply of at least 50 jacket substructures annually to support SSE's offshore wind developments.BiFab is a fabricator of structures and equipment for the oil and gas industry which has recently extended its expertise into the fabrication of jacket substructures suitable for offshore wind developments. It operates three fabrication facilities in Scotland, two in Fife and one at Arnish Point in Lewis, Stornoway. BiFab has already attracted government support to develop a new manufacturing facility for offshore wind jacket substructures. SSE's investment will be used to further develop this facility and this is expected to expand BiFab's capabilities to a total annual capacity of up to 130 units.Chief executive Ian Marchant said: "SSE is committed to becoming a major participant in the offshore wind market, and our current developments and success in securing development rights from the Crown Estate underline this.""To realise our ambitions, it is essential that SSE is able to establish a reliable supply chain, particularly for those elements where manufacturing bottlenecks have already been identified as a significant risk." "This investment in BiFab secures a reliable supply of offshore structures for our SSE Renewables business, from a manufacturer with a proven track record. It also provides our SSE Ventures business with an investment in a high-potential growth industry."