A union has called on the Scottish Government to take “decisive action” to protect nearly 400 jobs at risk at the Grangemouth industrial cluster.
Chemical manufacturer Syngenta announced last week that it plans to cease all operations at the site by the end of 2027. The firm, which occupies the site of the former ICI petrochemical plant at Scotland's largest industrial site, failed to warn either Westminster or Holyrood of its intention to pull the plug on its Scottish operation.
The company, owned by state Chinese firm Sinochem, said the closure would result in 377 job losses, although it added that no final decision had been made.
Union demands action
Unite has urged ministers to protect the workers. Scott Foley, industrial officer at the union, said: “Unite has met with representatives of Syngenta following the company’s proposal to cease operations in Grangemouth at the end of 2027 with the loss of 377 jobs.
“This proceeds several meetings held with the Scottish Government where we pressed the urgency of the situation, and demanded that decisive action be taken by ministers to protect operations at the site.
“We have requested a detailed explanation of the economic case for closure from Syngenta along with the disclosure of other relevant financial information.
“Further meetings are scheduled with Syngenta where we will press the case for a pause in the closure plans until every option is fully explored.
“Unite is fully committed to supporting our members at Syngenta and those employed within the contractor base and wider supply chain.
“We will leave no stone unturned in the effort to secure the most positive outcome for our members, and their families.”
Company's rationale
The move by Syngenta comes just over a year after it was given more than £2 million by Scottish Enterprise to expand the site. However, the company has reportedly said it would pay back the sum in full if the site closes.
It said its operations at Grangemouth are significantly more expensive to operate than at other production sites, despite “substantial efforts to reduce the difference”.
The firm said it is “committed to genuine consultation with trade unions and employee representatives” and could consider “alternative options or paths forward for the site”.
Mike Hollands, Syngenta Crop Protection’s global head of production and supply and president of Syngenta UK, previously said: “The workforce at Grangemouth is highly skilled and passionate but, despite all efforts, we have not been able to make the Grangemouth site competitive compared to alternative supply options.
“It is with a very heavy heart that we make this proposal, but we are committed to a constructive consultation and will continue to consider options as part of that process.”
Government response
Syngenta said it had undertaken a “detailed review” of its Grangemouth operations “amid increasing international competition and challenging energy positions”. It said savings identified would still “fall short in bridging the site’s competitiveness gap”.
Speaking in the Scottish Parliament today, Stephen Flynn told MSPs that Scottish Enterprise had worked with Syngenta “to identify solutions to operational and infrastructure challenges, explore investment opportunities, and consider what support might help secure the long-term future of the site”.
He added: “This engagement, and the support offered, centred around identifying measures that might support continued industrial activity, safeguard jobs and help secure a sustainable future for the site.
“Ahead of the company's board deliberations in September, I wrote to them expressing support for the Grangemouth site and its future development, and I understand that similar representations were made by the UK Government.
“Despite those efforts, it is disappointing that neither government received substantive feedback on our offer, nor any indication from Syngenta on the board's position, prior to being informed of the proposed consultation last week.”