Bridging loan for Thurso-based AMTE Power is 'good news' say Caithness business leaders and politicians
Business and enterprise leaders in Caithness along with local politicians have described as "good news" the £1 million bridging loan secured by Thurso-based battery manufacturer, AMTE Power PLC, which is facing financial difficulties.
While welcoming the positive development, Trudy Morris, the chief executive of the Caithness Chamber of Commerce, said it is "extremely baffling and concerning" why the Scottish Government is not doing more to secure investment in battery cell development.
She said: "A number of companies are driving forward the UK’s race to reach its decarbonisation goals and AMTE plays a significant role in the crucial development of battery technologies which are fundamental to these ambitions.
"It is good news to hear a bridging loan has been secured, though what this means for the business going forward is yet unknown. It is a concerning situation not least for the significant number of staff employed locally."
Ms Morris added: "It is also extremely baffling and concerning that the Scottish Government isn’t doing more to secure investment into battery cell development and secure jobs in Scotland when we see sizeable investments announced south of the border to secure manufacturing for the transition to electric vehicles."
Eann Sinclair, the area manger for Highlands and Islands Enterprise, said: "This is really good news for the company as this bridging loan buys them some time and that is what is needed now.
"It will also be such a relief for the staff who have been living with uncertainty and for the local economy as AMTE Power is an important business in our area.
"We just have to hope that step by step it can see a route through this but this latest development is more optimistic."
Caithness, Sutherland and Easter Ross MP Jamie Stone said: "I am mightily relieved to hear this news. It gives the company a breathing space, an opportunity to raise the additional finance they need.
"AMTE is probably the only homegrown British cutting-edge battery company of this type. Its intellectual knowledge and research capability should be seen as a national asset of great importance in a competitive world. For this reason, I hope the Scottish Government and the UK government will step in behind the firm.
"Thirty-five jobs are really important in the north of Scotland."
Local MSP Maree Todd said a bridging loan would give the company "the necessary time and financial resources to negotiate a deal with its investor".
"This is a positive development, which I hope will lead to job security for the employees and stability for the company, enabling it to continue contributing positively to the socio-economic wellbeing of the far north," said the SNP MSP for Caithness, Sutherland and Ross.
AMTE Power told the London Stock Exchange that Arena Investors LP would provide the bridging loan while it sought an initial equity investment of £2.5 million.
In a statement, it said a potential new equity investor had made a conditional proposal for the amount – which would see the company through to September – and "intends to implement a financial solution" for the group beyond that date.
AMTE Power stressed there are no guarantees over the proposal but chief executive, Alan Hollis, welcomed the loan.
