Syngenta proposes closing Grangemouth site, putting 377 jobs at risk

Syngenta announced on Thursday 1 October that it plans to cease all operations at its Grangemouth site, putting 377 jobs at risk. 1 2 The company said no final decision has been made and that it has entered formal consultation with trade unions and employees. 1 2 Syngenta said the site "remains significantly more expensive to operate than other production sites" and that a detailed review found savings would still fall short of closing the competitiveness gap, citing increasing international competition and, according to the Evening Standard, challenging energy positions. 1 2

Mike Hollands, president of Syngenta UK, called the workforce "highly skilled and passionate", said the proposal was made "with a very heavy heart", and said the company would consider options during consultation, including alternative paths forward for the site. 2 1 The proposal comes just over a year after Syngenta, which the Evening Standard says is owned by Chinese state firm Sinochem, was awarded Scottish Enterprise funding to expand the site; the BBC gives the figure as £2.2m. 1 2 Scottish Economy Secretary Stephen Flynn called the plans "extremely disappointing", said the Scottish government had made clear its strong opposition to any scale-down or closure, and urged the UK government to release some of the £200m promised for Grangemouth, saying none had yet been allocated. 2

UK Reindustrialisation Minister Blair McDougall said the government had worked with Scottish counterparts to explore every avenue of support but that Syngenta took the decision on a commercial basis; he said he met the company on Thursday and that the government would work with the National Wealth Fund on options for the area. 2 Scottish Greens MSP and party co-leader Gillian Mackay called it "another devastating blow" for workers and the community, said governments should do more to protect jobs, and said she would work for support for affected workers. 1 2 The announcement follows the closure of the Grangemouth oil refinery, Scotland's last, in April last year with about 400 jobs lost, and the BBC adds that bus maker Alexander Dennis announced in March plans to close its Falkirk plant with 115 jobs lost. 1 2