Grangemouth firm took £1m of public money months before closure announcement

Grangemouth firm took £1m of public money months before closure announcement

A chemical company, Syngenta, secured £1 million from Scottish Enterprise to fund job creation just a few months before it revealed plans to shut down its Grangemouth facility. This funding was part of a larger £2.2 million grant awarded in May of the previous year intended to support increased production at the plant. However, the company announced that it is no longer viable to maintain operations due to intensifying global competition, putting 377 jobs at risk.

Union representatives are currently in discussions with both the UK and Scottish governments concerning the potential job losses. Syngenta has committed to reimbursing the Scottish Enterprise funding in full if the Grangemouth plant is closed following consultation. A spokesperson for Syngenta explained that around half of the grant had been received so far, and this was connected to a capital investment nearing £15 million aimed at diversifying activities and securing the site’s future. Despite these efforts, the company could not achieve the necessary competitive standing.

The closure comes amid a series of significant economic setbacks for the region. Last April, the nearby oil refinery was closed, leading to the loss of approximately 400 jobs. Additionally, in March, bus manufacturer Alexander Dennis announced the closure of its Falkirk plant, which resulted in 115 jobs being cut as operations were consolidated at a different location. Earlier, the UK government had pledged an extra £200 million from the National Wealth Fund to support Grangemouth’s economy.

Local MP Brian Leishman described a recent meeting with Syngenta as going “poorly” and questioned the sincerity of the company’s consultation process. He emphasized that the company has only presented closure as the final option, despite the stated purpose of consultation being to explore ways to save jobs. Leishman highlighted the wider economic impact, calling it a “Scotland-wide issue” and urged government intervention to protect the manufacturing base and associated supply chains. Meanwhile, the Reindustrialisation Minister, Blair McDougall, stated that the government is committed to working with Syngenta to explore all possible alternatives and support affected workers and the community

Read the full article from The BBC here: Read More