A CAMPBELTOWN wind tower manufacturer, which served the onshore and offshore energy sectors, has collapsed into administration after succumbing to deteriorating market conditions.
CS Wind (UK) Limited, based at the Machrihanish Business Park was founded in 2016 following the acquisition of Wind Towers (Scotland) Limited, which at the time was the only UK factory producing onshore and offshore wind tower systems.
However in recent years it had seen contracts and revenue decline amid worsening market conditions, administrators at FRP Advisory said. A managed wind-down took place during 2020, with the factory effectively mothballed in the spring of last year.
While it is understood that the factory used to employ around 130 people, all staff have now either left or have been made redundant.
The most recent accounts for CS Wind (UK) indicate that its immediate and ultimate parent company is CS Wind Corporation, which is incorporated in Korea.
Joint administrators Michelle Elliot and Tom MacLennan of FRP are now marketing the company’s assets for sale. The assets include plant and machinery and a residential property in Campbeltown that had been used by management for accommodation.
Ms Elliot said: “CS Wind (UK) and its predecessor businesses have a long tradition of designing, manufacturing and supplying high quality wind tower solutions to clients across the UK and Europe. The wind tower industry has hence had a significant presence in Argyll for many years, but market conditions have unfortunately resulted in the business being unsustainable and with no immediate prospect of recovery.”
Doubts about the future of the company emerged in August last year, when The Herald reported that Highlands & Islands Enterprise had blocked the removal of plant from the Machrihish factory. HIE, which had provided grants of £3 million to the company, took action to “protects its investment” and ensure the factory could continue to operate.
More to follow.