SSE projects unaffected by supplier collapse

Skykon Scotland Administration signals wind power manufacturing turmoil, with the Machrihanish turbine tower plant in administration, 130 jobs at risk, SSE supply chain unaffected, and Ernst & Young reviewing insolvency options and potential buyers.

British utility Scottish and Southern Energy said its wind farm projects were not jeopardized by the administration of one of its local suppliers.

The Scottish subsidiary of Danish wind power company Skykon filed for administration, similar to SkyPower creditor protection cases elsewhere, after its mother company suspended payments in October, threatening 130 jobs at its factory in Machrihanish on the west coast of Scotland.

"This does not jeopardize the development of our wind farms. We do use a lot of different manufacturers," a spokeswoman for SSE said, noting projects such as Clyde wind farm continue to progress.

Workers at the wind turbine tower manufacturing plant were told not to return to work after the holidays, Unite Regional Officer for Scotland Kenny Jordan said.

"The employees are fearful of their future and until we have something guaranteed there will be that anxiety," he said.

The union is meeting with Skykon employees and appointed administrator Ernst & Young to offer assistance and to receive more information on the future of the site and broader windfarm development trends in Scotland.

The Skykon subsidiary has already attracted some offers from potential buyers, a spokesman for Ernst & Young said, without giving further details.

"We are currently reviewing the facility's financial position and order book with a view to assessing its immediate trading prospects," said Ernst & Young's Andrew Davison in a statement.

Danish competitor Vestas sold the plant to Skykon in 2009, but a spokesman said the company had no plans to repurchase it, even as a Scottish windfarm contract won by Siemens signaled continued investment.

Vestas said in October that it planned to cut around 3,000 jobs as demand for wind turbines did not meet previous expectations amid recent onshore windfarm rejections in Scotland.

Skykon had planned to treble jobs at the Scottish plant and to expand production capacity.

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