Nearly 400 people are at risk of losing their jobs after a chemical manufacturer announced plans to cease all operations at its Grangemouth site.
The move comes just over a year after Syngenta, owned by state Chinese firm Sinochem, was given more than £2 million in Scottish Enterprise funding to expand its Scottish site.
The company said on Thursday that, while no final decision has been made, it had now entered formal consultation with trade unions and employees at the site.
Job losses and context
If the plant closes, 377 people will lose their jobs. It comes a year after more than 400 workers lost their jobs as the Grangemouth oil refinery, Scotland’s last, closed.
Syngenta said its Grangemouth site “remains significantly more expensive to operate than other production sites, despite substantial efforts to reduce the difference”.
The firm said it was “committed to genuine consultation with trade unions and employee representatives” and could consider “alternative options or paths forward for the site”.
Company statement
Mike Hollands, Syngenta Crop Protection’s global head of production and supply and president of Syngenta UK, 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.”
Syngenta said it had undertaken a “detailed review” of its Grangemouth operations “amid increasing international competition and challenging energy positions”. It said that savings identified would still “fall short in bridging the site’s competitiveness gap”.
Political reaction
Gillian Mackay, the Scottish Greens MSP for Central Scotland, said the proposed closure was “another devastating blow” for workers and the local community in Grangemouth.
She said: “Our Governments should be doing more to protect jobs and ensure that workers can benefit from our transition to a greener future.
“Grangemouth is my home, and I am concerned about what this will mean for the local community if it goes ahead.
“I will be working to make sure that there is a good outcome and support for workers who will be impacted by Syngenta’s decision.”
Meghan Gallacher, Tory MSP for Central Scotland, said: “This is another hammer blow for Grangemouth and my thoughts are with the workers who are set to lose their jobs.
“Grangemouth and the surrounding communities have been devastated by the closure of major sites in recent years and this will have a further deeply damaging impact on the local and national economy.
“Both SNP and Labour ministers must pull out all the stops to try and protect these jobs and offer support to those who will be affected.
“With the closure of the oil refinery and the Alexander Dennis plant in Falkirk, we have often seen Scotland’s two governments asleep at the wheel when it comes to saving jobs in this area and failing to offer local people new opportunities.
“It is time for them to work together to stop the ongoing mass deindustrialisation of Grangemouth and ensure that major employers do not continue to shut down their operations at this alarming rate.”
