Glasgow-based small wind turbine manufacturer Gaia-Wind has gone into provisional liquidation putting 12 jobs at risk.

Despite having a long and successful history in the industry, the firm said competitive pressures in Denmark reduced sales in the last year or so which was not helped by the UK government’s reduction in tariff support in recent years.

Although a business plan at the end of 2017 provided a practical basis for survival, recent drastic cuts in Italian and Japanese government support for small scale wind turbines lead to dramatic reduction in the immediate order pipeline in those markets. Faced with these challenging circumstances in each of its main market areas, the Board reached the unfortunate decision that the company had no option but to cease trading.

The provisional liquidator, Michael Reid of Aberdeen-based Meston Reid & Co, is looking for interested parties to take over the business in whole or in part, or parties interested in acquiring the assets. Initial interest has been expressed from a number of sources and anyone wishing information should contact the provisional liquidator.

Director Johnnie Andringa, said: “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 2,000 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 committed workforce.”

Scottish Renewables said the disappointing news reflects clearly the state of this sector in the UK.

Deputy chief executive Jenny Hogan said: “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.”