Swiss-owned chemicals producer initiates consultation citing high operating costs.
Syngenta, a Swiss-owned chemicals producer, has proposed the closure of its manufacturing site in Grangemouth, a move that places 377 jobs at risk. The company has formally begun a consultation process with its trade unions and employees regarding the potential closure, stressing that no final decision has yet been made.
The decision stems from the Grangemouth site facing consistently high operating costs, which Syngenta states make it significantly more expensive compared to alternative production locations. The company indicated that despite various efforts to improve its competitiveness, these challenges have persisted.
Mike Hollands, Syngenta Crop Protection’s Global Head of Production and Supply and President of Syngenta UK, addressed the situation. He 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.”
This announcement follows a period where Grangemouth has already experienced significant job losses, with approximately 400 workers affected by the closure of the Grangemouth oil refinery last year.
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Labour MP for Alloa and Grangemouth, Brian Leishman, expressed his deep concern over the news. Mr Leishman stated: “This is absolutely horrendous news for the workforce, horrendous news for the town, which has seen a steady stream of deindustrialisation for decades.”
He further called upon the UK Government to release the £200 million that was previously committed to Grangemouth, advocating for its reindustrialisation efforts. Mr Leishman emphasised that the money and the will must be present to move forward with such initiatives.
