Steel firm Mabey Bridge is planning to close its renewable energy infrastructure division after an attempted sale fell through.
The firm yesterday signalled a consultation on the proposed closure of the Monmouthshire-based Renewables division, putting 125 jobs at risk.
Mabey originally announced plans to sell the division in late 2014 but yesterday it said that process had failed. It cited “uncertainty of market conditions for the UK onshore wind industry” in an apparent reference to the government’s decision to end subsidies for new onshore wind projects from next spring.
“Following contact with over 50 companies from the UK and abroad, receiving expressions of interest from a number of them, we have been in exclusive discussions with one organisation for the last three months,” said the firm in a statement.
“However, it became apparent at the end of last week that the deal was not going to reach a successful conclusion.
“We believe that we have exhausted all available options given the extensive process that we have run since December. As a result, earlier today our employees were told that a full consultation process will now be conducted with those affected by the proposed closure.”
Mabey said the Renewables division remained committed to honouring its existing obligations to both customers and suppliers, which are expected to be completed by September. The division manufactures components for on and offshore energy generation, including wind turbine towers, monopiles and foundation cans.
Mabey Bridge chairman Juliette Stacey said: “This is not a decision that we have taken lightly and we understand that this is a very difficult time for our people. Since December 2014, we have made every effort to try to find a buyer.
“The uncertainty of market conditions for the UK onshore wind industry in the longer term has been a contributing factor.
“The priorities for us now are to support our affected employees in whatever way we can, and to ensure that the longer-term future of Mabey Bridge as a whole is secure. We will provide our people with as much information and support as possible over the coming weeks.
“Mabey Bridge will continue to be run from Lydney, Gloucestershire, providing high quality bridging and infrastructure solutions in the UK and overseas. We will now focus on building a stronger and more sustainable future for Mabey Bridge.”