16 September 2011 Last updated at 11:53 ET

Wind turbine maker Proven Energy in administration

Proven Energy manufactures small-scale wind turbines at its site in Stewarton

A Scottish company that makes small-scale wind turbines has gone into administration with the loss of 55 jobs.

Directors of Proven Energy called in the receivers after a fault was found in one of its turbines and the firm did not have the finance to keep trading.

The company manufacturers at a site in Stewarton in Ayrshire and also has a design office in East Kilbride.

Twenty people are being kept on to prepare the company for sale.

The firm has more than 3,000 of its products installed worldwide.

The company recently suffered a significant setback following the identification of a defect in its P35-2 model, which although management believes is minor and can be repaired, resulted in the requirement to advise customers to temporarily cease using the product.

The P7 and P11 models have not been affected.

As a result of the product issue and the inability to obtain necessary additional funding, the directors had no option but to cease trading.

Significant losses

Blair Nimmo from KPMG, who have been appointed receivers, said "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."

The turbine maker said it was hopeful that a sale of all, or parts of the business, could be achieved.

The administrators are working with government agencies to offer assistance to those who are losing their jobs.