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Turbine firm in cash crisis despite huge tax windfall  

Credit:  By Rod Mills, www.express.co.uk 27 October 2010 ~~

A firm offered almost £10million of taxpayers’ money to safeguard jobs in the wind turbine industry has gone bust, it was revealed yesterday.

The Danish energy company Skykon took over the Vestas wind turbine plant at Machrihanish on Kintyre last year after being offered financial aid by the Scottish Government.

The money was made available in a deal announced by Alex Salmond when he visited the site outside Campbeltown, although only £2.4million has so far been handed over.

The cash was to have secured the jobs of about 100 people employed by the company and to have helped create a further 300 posts. Vestas had been planning to shut the plant.

But Skykon, which was due to begin production within weeks, said that it had found itself in a “cash-strapped situation” and disclosed that it was suspending payments to its creditors.

Skykon was preparing to invest £35million in expanding the site and had ambitions to become a major international supplier of wind turbines.

But the company’s chief executive officer, Jens Pedersen, said yesterday: “The wind turbine industry is project based and very cyclical, and it is ­currently being affected by a number of negative factors in the wake of the financial crisis.

“These effects have also impacted Skykon to the effect that we are in a very cash-strapped situation.”

Skykon won a massive contract last year to supply Europe’s largest onshore wind farm development, Clyde Wind Farm, in South Lanarkshire.

A Scottish Government spokesman said: “Skykon has received £2.4million in Regional Selective Assistance instalments to specifically support jobs at the Kintyre plant.

“Not a penny more will be paid until the matter has been resolved, and Skykon have assured us they are seeking a solution.”

In a further blow to the renewables industry, Vestas Wind Systems, the world’s largest wind turbine manufacturer, said it would axe 3,000 jobs and shut some plants to adjust to weaker demand.

Source:  By Rod Mills, www.express.co.uk 27 October 2010

This article is the work of the source indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.

The copyright of this article resides with the author or publisher indicated. As part of its noncommercial effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Send requests to excerpt, general inquiries, and comments via e-mail.

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