By Kari Williamson
Although the design flaw is believed to be minor and repairable, Proven Energy has had to advise customers to temporarily cease using the product, and the company is now looking for potential buyers of the business.
The P7 and P11 wind turbine models have not been affected.
Proven Energy, which is well-known in the small wind turbine sector, has 75 employees across its sites in Stewarton, Ayrshire, and East Kilbride, South Lankashire, in the UK. 55 have already been made redundant.
The P35-2 small wind turbine has already been recognised by the UK Microgeneration Certification Scheme, which certificates microgeneration technologies used to produce electricity and heat from renewable sources, and is linked to financial incentives such as feed-in tariffs.
Blair Nimmo and Tony Friar of KPMG LLP have been appointed joint receivers of Proven Energy Ltd at the request of the company’s directors.
Nimmo, Head of Restructuring for KPMG in Scotland, says “Proven Energy is a well-known brand in the small wind sector having been established for more than 30 years.
“Although Proven has achieved substantial turnover growth in recent years, the company has made significant losses as it focused on product development, making it difficult for the business to cope financially with the cost of the product failure.”
He adds: “We are hopeful that a sale of all or parts of the business and assets can be achieved and would encourage any interested parties to contact us as soon as possible.
“We are working with government agencies to ensure the redundant employees obtain as much assistance as possible.”