Chamber chief hopes deal can be made to save Thurso battery jobs
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North business leader Trudy Morris says she hopes a deal can be made to save around 35 skilled jobs at battery manufacturer AMTE Power and retain its production headquarters in Thurso.
She said it was "incredibly disappointing and concerning" to hear that a notice of intention had been filed to appoint administrators at the firm, which has been experiencing well-documented financial difficulties in recent months.
AMTE Power was founded in 2013 and is a leading UK developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets.
Ms Morris, chief executive of Caithness Chamber of Commerce, said: "A significant local employer and remarkable business, AMTE plays a crucial role in the development of battery technologies which are fundamental to the nation’s race to reach its decarbonisation goals.
"Earlier this year AMTE became the first European business to receive UN38.3 transportation testing certification for a sodium-ion cell, manufactured here in Caithness.
"My thoughts are with staff faced with this devastating news, especially now right before Christmas. We sincerely hope a deal can be made to save these skilled jobs and retain the purpose-built production headquarters in Thurso.”
A team comprising restructuring and corporate finance professionals from FRP, a specialist business advisory firm, will invite interested parties to come forward to express their interest.
FRP director Richard Bloomfield said: “AMTE Power is a leading player in the UK’s battery cell manufacturing capabilities and has an important role as part of the wider infrastructure that supports the nation’s clean energy transition.
"We expect interest from trade and institutional investors as we work diligently to secure a future for the business.”
Councillor Struan Mackie, who represents the Thurso and Northwest Caithness ward and is the provost of Thurso, insisted "no stone must be left unturned" in seeking a buyer for the business.
"The news that AMTE Power has sought to enter administration will be a shock to the local community," he said.
"For decades, the far north has been a centre of excellence for battery technology development, commercialisation and manufacture. AMTE and its predecessors played a pivotal role in developing Caithness as a hub within this global industry and I hope a buyer can be found.
"There is no good time to enter administration, but the announcement coming mere days before Christmas will be devastating for the workforce.
"Talks will be ongoing, and I trust that all relevant agencies will give their support to finding an exit from administrative proceedings.
"Given the global opportunity presented by net-zero, no stone must be left unturned in seeking a suitable buyer for AMTE and providing immediate security to the highly skilled and loyal workforce based in Caithness."
Councillor Ron Gunn, who also represents Thurso and Northwest Caithness and chairs the Caithness area committee, said: "This news is a huge blow to the county and couldn't have come at a worse time for the employees.
"I understand that AMTE Power has applied to go into administration and I would like to hope that, as it is a leader in its field, a buyer can be found quickly."
Maree Todd, the SNP MSP for Caithness, Sutherland and Ross, has expressed her concern to Scotland's energy secretary.
“It is bitterly disappointing to learn of AMTE Power’s intention to appoint administrators," Ms Todd said.
“Throughout the years, AMTE has been a key contributor to the far north economy. It has supported the growth and development of a highly skilled workforce and put Thurso on the map as a leader in battery cell manufacturing.
“This will undoubtedly be an unsettling time for staff, their families and the wider community. I hope a solution that supports a commercially sustainable future for AMTE and job security for its team can be found as soon as possible.
“I have written to Neil Gray, the cabinet secretary for wellbeing economy, fair work and energy, to express my concern over AMTE Power’s announcement and the potential loss of highly skilled jobs in Caithness.”
Jamie Stone, the Liberal Democrat MP for Caithness, Sutherland and Easter Ross, said: "Having lobbied hard for UK government ministers to provide financial support to the company, I am very disappointed by this news. People will presumably lose their jobs if there is no rescue deal, and at this time of year no less.
"I believe that there is a hard lesson to be learnt here. While I fervently hope that the company can be rescued, nevertheless, as custodians of public money, we politicians and public servants need to establish why this situation has come about and put in place safeguards that will help prevent any future repetition."
In July it was announced that AMTE Power had secured a £1 million bridging loan.
Earlier that month, in a statement to the Stock Exchange, the company said it continued to be "in discussions with existing and potential investors concerning raising further finance” but stressed that its position was becoming critical.
The purpose-built facility in Thurso has the second-largest cell manufacturing capacity in the UK.
A proposed AMTE factory in Dundee was expected to be capable of producing over eight million battery cells a year, and create more than 200 jobs.
