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The Scottish division of Skykon, a Danish wind turbine maker, has gone into administration with the possible loss of 130 jobs.
The Campbeltown company had been struggling with financial difficulties for several months before sending home its staff and calling in Ernst & Young as administrator this week.
It said it was suspending payments to creditors in October, after hitting a “very cash-strapped situation”.
Unite, the union, described the news as “a blow to the local economy”.
Kenny Jordan, Unite’s regional officer, said: “Skykon going into administration is tragic news. Unite will be doing everything it can to support this valuable asset and the jobs that depend on it.
“Machrihanish in Scotland is already suffering as an unemployment blackspot. Unite will meet with the administrators and the workforce early next week to offer whatever assistance the union can to maintain the facility.”
Skykon bought the plant from Vestas last March, hoping to expand it from 100 to 400 staff. It also took £2.4m from the Scottish government to safeguard jobs.
The site’s permanent closure would be a serious blow to Scotland’s hopes of being at the heart of wind energy investment in the UK.
Skykon’s site was its only wind factory, leading Alex Salmond, Scotland’s first minister, to attempt to broker a rescue package for the company in November.
Last year, Vestas, the turbine giant, said it would have to cut 3,000 jobs in Denmark and Sweden because of a struggling market for new orders.
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