GLASGOW-BASED wind turbine manufacturer Gaia-Wind has ceased trading, and a provisional liquidator has been appointed.

Although the announcement lauded Gaia-Wind's 'long and successful history in the industry', it cited competitive pressures that reduced sales in the last year, compounded by the UK government’s reduction in tariff support for small wind installations in recent years.

Although a business plan at the end of 2017 provided a practical basis for survival, further drastic cuts in Italian and the Japanese government support for small scale wind turbines lead to a dramatic reduction in the firms order pipeline, prompting the company's board to decide that the company had no option but to cease trading. This development places 12 jobs are at risk.

Michael Reid, of Meston Reid and Co, Aberdeen, was appointed as provisional liquidator at the Court of Session, Edinburgh, and will now look for interested parties to take over the business in whole or in part, or parties interested in acquiring the assets.

Director Johnnie Andringa commented: “ Appointing a liquidator is the last resort because the board has worked hard over a long period of time to develop a sustainable business in wind energy. With almost 2000 wind turbines installed mainly in UK and Europe as well as Australia, Tonga and Alaska, an opportunity presents itself for someone to purchase the service, maintenance and spare parts aspect of the business.

"With the turbine design offering the best price, performance and reliability available in the market, and demand still evident for the product in the UK and globally. It would be great if a trade sale could be achieved which preserves the jobs of the highly skilled and loyal workforce."

Scottish Renewables deputy chief executive Jenny Hogan said: "This disappointing news reflects clearly the state of this sector in the UK.

"Small wind turbine manufacturers like Gaia-Wind have suffered from both cuts to support provided by the UK Government and, more acutely, a lack of direction for the policies which should sustain a viable market for their products. While Gaia had sought export markets, these too have been affected by similar issues.

"This announcement comes as a blow to Scottish manufacturing and another reminder that cuts to and inaction on the Feed-in Tariff made at Westminster have very real effects for the people who work in the renewable energy industry and its supply chain," said Ms Hogan.