KBR Not To Proceed With Development Of Nigg Yard

19th April 2010

KBR has been actively seeking a viable and sustainable opportunity for the use of its Nigg Yard. Though the facility is uniquely qualified and positioned to support fabrication and the marine industry, KBR has not been successful in its efforts. The Company will continue to seek alternatives for redeploying the Nigg Yard, including the prospective sale of the facility. KBR believes that the facility could serve as a key link in the supply chain supporting the Scottish National Renewable Energy Plan. To ensure a beneficial role for this property in the region, KBR is collaborating closely with Highlands and Islands Enterprise, the Highland Council, Scottish Development International and the Scottish Government to determine what strategic options may be available.

Council response to KBR Nigg decision

Councillor Ian Ross, Chairman of The Highland Council's Planning Environmental and Development Committee , said he was bitterly disappointed at KBR's decision not to proceed with the redevelopment of the former oil fabrication yard at Nigg, Easter Ross.

He said: "We had what we considered to be justifiably high hopes that KBR would redevelop the Nigg facility, given the very positive discussions we have had with them in recent times and the great potential for Nigg to become a major hub for renewable energy manufacturing opportunities. KBR were well placed to take forward significant renewable related development at the Nigg site. Therefore, this announcement is a bitter disappointment. "

" It is crucial we do not miss the window of opportunity which is currently available and it is still the clear view of Highland Council that Nigg is ideally located to compete successfully for the considerable marine and off-shore renewables work which will come on-stream in the near future. It is vital we realise the economic development potential which is available through the development of the Nigg site for both the Highland and Scottish economies".

"We believe there will be other major companies involved in the renewable market who will be interested in taking over this site and we will be urging KBR to market the land as quickly as possible. We want to maintain the momentum in this key strategic site which has been identified as one of the primary sites in the National Renewables Infrastructue Plan for an Integrated Manufacturing facility for the offshore wind, wave and the tidal sectors."

"At the same time, we will have early meetings with Highlands and Islands Enterprise and the Scottish Government to examine the options for best taking forward the redevelopment of Nigg.

He did not rule out that the Council would use its powers of compulsory purchase if early progress was not made in re-marketing their site and the adjoining land KBR leases from the Wakelyn Trust