Interested parties show 'credible interest' in Thurso battery manufacturer
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Hopes of a fresh start for Thurso-based battery manufacturer AMTE Power have risen, with "credible interest" reported from "several interested parties".
On December 19 a notice of intention was filed to appoint administrators at the firm, which has been experiencing financial difficulties in recent months, leading to concerns over approximately 35 skilled jobs at the site.
On Monday, AMTE Power announced that the accelerated sale process "has elicited interest in the business and assets of the company".
The company's board has now filed a second notice of intention to appoint an administrator. This allows a further period of 10 business days "to explore the interest elicited by the accelerated sale process and conclude a transaction".
A team comprising restructuring and corporate finance professionals from FRP, a specialist business advisory firm, has been inviting interested parties to come forward to express their interest.
FRP director Richard Bloomfield said on Monday: “The accelerated M&A [mergers and acquisitions] process is gathering pace and we’ve had an encouraging response that recognises the considerable potential of AMTE Power.
"There is credible interest from several interested parties which has supported the case to extend the notice period as we look for a viable solution to take the business forward.”
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.
After the initial announcement last month, Trudy 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.
"[In 2023] 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 the staff faced with this devastating news. We sincerely hope a deal can be made to save these skilled jobs and retain the purpose-built production headquarters in Thurso.”
Councillor Struan Mackie (Thurso and Northwest Caithness) insisted "no stone must be left unturned" in seeking a buyer for the business, while Maree Todd, the SNP MSP for Caithness, Sutherland and Ross, expressed her concern to Scotland's energy secretary Neil Gray.
“Throughout the years, AMTE has been a key contributor to the far north economy," Ms Todd said at the time. "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.
“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."
Jamie Stone, the Liberal Democrat MP for Caithness, Sutherland and Easter Ross, said: "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."
Last 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.
