Chemical Firm Took £1M Public Funds Before Announcing Plant Closure

A chemical firm received £1 million in public funding from Scottish Enterprise to create new jobs, only months before announcing plans to close its Grangemouth site, putting nearly 400 jobs at risk. The funding was part of a £2.2 million award to Syngenta in May of last year, intended for the expansion of production at the plant.

Union leaders are scheduled to meet with representatives from the UK and Scottish governments to discuss the situation. Syngenta has stated that it will repay the full amount of the Scottish Enterprise funding if operations at the Grangemouth site cease. The company cited increasing international competition and an inability to make the plant's business operations competitive as reasons for the potential closure.

A Syngenta spokesperson explained that the grant from Scottish Enterprise was in support of a capital investment of close to £15 million made by the company itself at the site, as part of efforts to diversify activity and secure its future. As of the announcement, approximately half of the grant allocation, around £1 million, had been received, with the intention to repay it fully if operations are halted.

This development follows a series of job losses in the Grangemouth area. The nearby oil refinery closed in April of the previous year, resulting in the loss of approximately 400 jobs. In March, bus manufacturer Alexander Dennis announced plans to close its Falkirk plant, leading to 115 job losses, and redirect its Scottish operations to its Larbert site.

Concerns Over Consultation and Economic Impact

Local Member of Parliament Brian Leishman met with the company, describing the meeting as having gone "poorly." Syngenta maintains that a final decision has not yet been made and that options will continue to be considered. However, Leishman expressed doubt about the genuineness of the consultation process regarding the site's future.

"Syngenta have offered one final solution and that is the closure of the plant," Leishman stated. "The whole purpose of a consultation is to try and figure out how we can get a path of saving jobs. That seems to be off the table here."

He further commented on the company's stated plan to close the site by the end of 2027, calling it "very final" and asserting that "The workers deserve an awful lot better."

Leishman characterized the potential closure as a "Scotland-wide issue," emphasizing the significant economic implications for Scotland, drawing parallels to the loss of over £400 million from Scotland's economy following the refinery's closure. He urged the prime minister to intervene, citing the UK government's intervention to save British Steel, and stressed that the 377 jobs on site represent thousands of jobs in the wider supply chain, forming a substantial part of Scotland's manufacturing base.

Leishman called for collaboration between the Scottish and UK governments to address the issue without it becoming a "political football."

Syngenta indicated that a detailed review of its Grangemouth operations preceded the announcement of closure plans. The company stated that the Grangemouth site incurred significantly higher operating costs compared to its other production facilities. While some cost savings were identified elsewhere in the business, they were insufficient to bridge the site's competitiveness gap. Mike Hollands, president of Syngenta UK, acknowledged the skill and dedication of the Grangemouth workforce but confirmed that the site could not be made competitive against alternative supply options despite all efforts.