Highlands and Islands Enterprise (HIE) has awarded a major contract for water, sewerage and other works at the Arnish yard to Aggregate Industries.

Aggregate Industries UK Ltd - from its base on Lewis - secured the £1.89 million contract following a competitive tendering process.

The work to be carried out by Aggregate Industries includes all major servicing of the Arnish yard including the installation of a new water main, the distribution of water throughout the site and new sewerage services including the replacement of the septic tank.

Aggregate Industries is also involved in road access improvements within the site as well as the creation of new development land around the yard.

Angus Macleod, Western Isles director of Aggregate Industries commented: "We are delighted to be involved in the refurbishment of the Arnish Yard and would congratulate all who ensured that this work could proceed.  We now look forward to a successful future for the yard as this will be of great benefit to the local economy.

"We anticipate that our contract will take 26 weeks to complete and will provide employment for up to 35 people on site along with a significant workload for our nearby Marybank Quarry, where all the drystone, asphalt and ready mix concrete for the project will be produced."

The awarding of this latest contract is another step forward in the continued development of Arnish.  The former oil fabrication yard on the outskirts of Stornoway is undergoing a £12 million revamp funded by HIE and Western Isles Enterprise, with £1.7 million worth of support from the European Regional Development Fund.

The aim is to create a multi-user industrial estate with a particular focus on renewable energy.  Cambrian Engineering - manufacturers of wind turbine towers and foundations for the offshore sector - is leasing the main fabrication workshop from WIE and several other businesses, from a variety of sectors, have expressed an interest in leasing further land at Arnish.

Chief executive of WIE, Donnie Macaulay said: "It is encouraging to see a local based company helping to transform the Arnish yard to provide an infrastructure that will eventually accommodate several tenant companies and also provide vital business and employment opportunities within the Western Isles.

"The awarding of another contract for major works at the site marks another milestone in the development of this project."