Highlands and Islands Enterprise (HIE) has agreed lease terms with BiFab for occupation of the fabrication facility at Arnish Point in Stornoway on the island of Lewis.

The Fife-based fabricators have been in discussion with HIE for a number of months and agreement on terms comes as a welcome boost to the island. It is anticipated that up to 60 jobs will be created.

First Minister Alex Salmond said: "This is tremendous news for the Outer Hebrides' economy and reflects Scotland's massive strengths in the energy sector. It follows last week's significant jobs boost for Campbeltown, with Skykon's takeover of the Vestas yard, safeguarding and creating hundreds of jobs.

"It demonstrates yet again that although economic conditions are tough, Scotland's renewables sector continues to go from strength to strength, sparking investment and creating valuable employment opportunities across the country."

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BiFab has significant fabrication orders for oil, gas and renewable energy projects and is seeking additional capacity to meet demand. The key attractions of Arnish for the company is its unique steel rolling plant, high quality equipment, deep water access and the availability of an experienced labour pool.

BiFab was formed in 2001 and is positioning itself to be a key supplier in the provision of offshore wind farm substructures in water depths from 15m to 70m. Recent interest in its product has prompted expansion plans for its base at the Fife Energy Park and the setting up of a new manufacturing facility in Germany.

The company has agreed a 12-year lease for the facilities on standard commercial terms.

John Robertson, managing director of BiFab said: "We are delighted to be setting up a manufacturing operation in Stornoway. The presence of a skilled local labour force and the significant facilities Arnish offers as a base will combine to make a major contribution to BiFab's continuing success in supplying worldwide markets."

HIE's area manager in the Outer Hebrides Archie Macdonald said the agency intended to build a long-term relationship with the company: "BiFab's aims for Arnish are an excellent fit with the Government's Economic Strategy through the provision of a supportive business environment. BiFab will be using the deep water capability at Arnish to provide key components for the offshore wind sector as well as continuing with its well established oil and gas fabrication."

(GK/JM)