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Last Updated: Monday, 4 December 2006, 17:10 GMT
Renewables firm in administration
Pelamis wave energy machine
The yard built wave machines for a Portuguese wind farm
A renewable energy firm in the Western Isles has gone into administration.

Camcal delivered three main tubular sections for wave machines in Portugal and provided two towers for an experimental offshore wind farm.

However, the yard at Arnish in Stornoway has been struggling with severe financial problems.

Chairman James McCallum hinted at the irony of a "green" energy business going into administration amid a drive for environmentally-friendly power.

He said: "Despite our best efforts over the past few weeks we have been unsuccessful in finding a buyer and it is with regret that the directors have today placed Camcal into administration.

The administrators will continue to build on the work of Camcal to pursue a long term future for Arnish and a long term sustainable future for employment on the island
Fraser Gary
Joint administrator

"When the company was formed in April 2004, it was widely believed that large volumes of manufacturing work for wind farms, both onshore and offshore, would be in the market in the near term.

"Repeated delays and postponements of many of these projects, often because of delays occasioned by the planning process, have left Camcal unable to operate at anywhere approaching full capacity."

'Continued opportunity'

Administration company Kroll in Glasgow is hopeful of finding a buyer.

At its height the yard employed about 100 workers but is now operated on a care and maintenance basis.

Joint administrator Fraser Gray said: "Camcal's Arnish Point facility offers a continued opportunity for the Highlands and Stornoway in particular to position itself at the forefront of UK renewable manufacturing.

"The administrators will continue to build on the work of Camcal to pursue a long term future for Arnish and a long term sustainable future for employment on the island."


SEE ALSO
Buyer poised for wave energy firm
09 Oct 06 |  Highlands and Islands
Buyer doubts over renewables yard
07 Sep 06 |  Highlands and Islands
Talks on future of renewable yard
28 Aug 06 |  Highlands and Islands

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