Cabinet Secretary for Economy, Jobs and Fair Work
Keith Brown MSP
T: 0300 244 4000
E:
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Bruce Crawford MSP
Convener
Finance and Constitution Committee
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COMMERCIAL IN CONFIDENCE
17 April 2018,
Mr Bruce Crawford MSP,
I write to inform the Committee about the Scottish Government’s ongoing support of
Burntisland Fabrications Ltd (BiFab).
In my recent letter to the Committee on 29 March, I took the opportunity to notify you that the
Scottish Government had extended our loan facility to BiFab by a further £4 million. This was
on the basis of our expectation that a third party investor would be secured in the near
future. I can now confirm that Canadian based JV Drivers, [REDACTED]
[REDACTED] is set to imminently acquire BiFab.
As previously stated, the precise details of the inward investment and associated support
package will remain commercially confidential. However, in the spirit of transparency to
Parliament, I wish to highlight that the Scottish Government will become a minority
shareholder in BiFab. This shareholding could reach up to 38% of the issued share capital of
BiFab. By taking such a stake, we are improving the return on our initial investment, and
subsequent investments over the longer period.
The Committee should also be aware that once a change of control has been secured, the
Scottish Government will make available a separate £10 million restructuring loan for the
new owners. This will help secure short term contracts as part of a ten year plan for growth
and expansion. This loan will be provided on a commercial basis.
Our enterprise agencies have waived outstanding monies for Methil and Arnish, owned by
SE and HIE respectively, as part of a negotiation of new long-term lease agreements, which
[REDACTED].
Scottish Ministers, special advisers and the Permanent Secretary are covered by
the terms of the Lobbying (Scotland) Act 2016.
See www.lobbying.scot
St Andrew’s House, Regent Road, Edinburgh EH1 3DG
www.gov.scot
I believe our intervention will maintain confidence in an important sector and support the
local economy. Our support will also help to create employment and growth in the Scottish
economy, which would have been foregone without our support.
As before, I would be grateful if you could please treat the content of this letter in strictest
confidence.
KEITH BROWN
Scottish Ministers, special advisers and the Permanent Secretary are covered by
the terms of the Lobbying (Scotland) Act 2016. See
www.lobbying.scot
St Andrew’s House, Regent Road, Edinburgh EH1 3DG
www.gov.scot