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Last Updated: Wednesday, 12 July 2006, 13:30 GMT 14:30 UK
Isles renewables yard in trouble
Pelamis wave energy machine
The yard won a contract to manufacture segments for Pelamis machines
The future of a renewable energy fabrication yard in the Western Isles remained in doubt after potential buyers failed to come forward.

Talks have started in an attempt to resolve financial problems facing Camcal's facility in Arnish.

Wave energy machines for Portugal were built at the yard, which was also involved in work on huge towers for an offshore wind farm.

The Arnish yard in Stornoway has been put on a care and maintenance basis.

Cam Cal continue to look for potential buyers. The Highlands and Islands Enterprise network has said it's continuing to support the efforts to find a new operator for the yard.

New operator

However it is understood that another potential buyer has not followed up its initial interest. Most of the remaining employees at the yard left when the last company with a contract in the yard, EWT, confirmed they were looking for a new fabricator for 16 wind turbine towers.

Two employees remain to keep the yard on a care and maintenance basis while the search goes on for a new operator.

It is understood that this position can be maintained until the end of the month.

Initial interest

Highlands and Islands Enterprise, who coordinated a 20m investment package for the yard over the past three years, said they were continuing to support Cam Cal in their efforts to find a new buyer.

It is understood that a Central Scotland-based company, which operates in the power generation and transport industries, has not followed up on its initial interest.

Any potential buyout is now likely after the company goes into administration.


SEE ALSO
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16 Jun 06 |  Highlands and Islands
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15 Mar 06 |  Scotland
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