SNP could provide 'further funding' as 'decisive action' demanded to save 400 Grangemouth jobs
Chemical manufacturer Syngenta announced last week that it plans to cease all operations at the site by the end of 2027.
SNP ministers could provide emergency funding to keep a key chemical plant at Grangemouth open with a pledge that “no stone is left unturned” to secure the future of the site as unions demanded “decisive action” to protect almost 400 jobs at the firm.
Chemical manufacturer Syngenta announced last week that it plans to cease all operations at the site by the end of 2027 - with Labour ministers now under intense pressure from the SNP government to hand over promised funding to revive the industrial hub.
An SNP minister has now suggested that following talks poised to take place between the Scottish government’s investment body, Scottish Enterprise, and the company, funding could be put forward to rescue the Grangemouth operation.
Stephen Flynn, Cabinet Secretary for Economy, Tourism and Transport, told MSPs that he has instructed Scottish Enterprise to “engage constructively” with Syngenta to “look at all available options”.
He added: “Once that has happened, we’ll be in a position to make a more rounded assessment as to whether any further money could be provided.
“There has been a package put together by the government to Syngenta and yet they still took the decision that they did because of the financial stress that they believe is on the facility at Grangemouth.”
The company, owned by state Chinese firm Sinochem, said the closure would result in 377 job losses, although it added that no final decision had been made.
The move by Syngenta comes just over a year after it was paid £1m of a £2.2m grant by Scottish Enterprise to expand the site. However, the company said it would pay back the sum in full if the site closes.
Unite has urged ministers to protect the workers.
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Scott Foley, industrial officer at the Unite union, said: “Unite has met with representatives of Syngenta following the company’s proposal to cease operations in Grangemouth at the end of 2027 with the loss of 377 jobs.
“This proceeds several meetings held with the Scottish Government where we pressed the urgency of the situation, and demanded that decisive action be taken by ministers to protect operations at the site.
“We have requested a detailed explanation of the economic case for closure from Syngenta along with the disclosure of other relevant financial information.”
He added: “Further meetings are scheduled with Syngenta where we will press the case for a pause in the closure plans until every option is fully explored.
“Unite is fully committed to supporting our members at Syngenta and those employed within the contractor base and wider supply chain.
“We will leave no stone unturned in the effort to secure the most positive outcome for our members, and their families.”
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Syngenta said its operations at Grangemouth are significantly more expensive to operate than at other production sites, despite “substantial efforts to reduce the difference”.
The firm said it is “committed to genuine consultation with trade unions and employee representatives” and could consider “alternative options or paths forward for the site”.
Mr Flynn has called on the UK government to finally release its promised £200m from the national wealth fund, earmarked for the Grangemouth hub as he argued that efforts are being made to keep the plant open.
Speaking at Holyrood, Mr Flynn said: “Many of the challenges identified by Syngenta lie outside devolved powers. I have therefore also written to the UK government to urge them to take meaningful action for Grangemouth, but in particular at Syngenta.
“The UK Labour government has consistently professed that it supports Grangemouth, yet not one penny of the £200m commitment from the national wealth fund has been deployed.
“That support is needed now: to invest in the industrial cluster to ensure it is fit for the future, that Grangemouth is viewed the world over as an attractive and exciting place to do business and that its workforce has opportunities long into the future.”
Scottish Labour economy spokesperson, Daniel Johnson, highlighted Mr Flynn’s “impatience” over the £200m fund.
He added: “While the national wealth fund has committed £200m, Scottish Enterprise has a critical role in terms of identifying projects but also preparing land and sites for that investment.”
Mr Johnson called for reassurances that Scottish Enterprise was “expediting their part so that the sum pledged by the national wealth fund can be drawn down”.
Scottish Conservative MSP for Central Scotland and Lothians West, Meghan Gallacher, said: “Hundreds of workers in Grangemouth are once again facing the threat of losing their jobs and my thoughts are with all those affected by this devastating news.
“It is only right that this firm are paying back the taxpayers’ money they received, but serious questions remain about how much diligence the SNP carried out before that was handed out.”
She added: “With the oil refinery shutting down and jobs also being lost at the nearby Alexander Dennis site, there is a strong case for this money being used to deliver urgent investment and support for employment opportunities in Grangemouth.
“This matter is too serious for Stephen Flynn to try and deflect and point the blame at Westminster. He must pull out all the stops to support workers at this company and protect jobs across Grangemouth.”
Mike Hollands, Syngenta Crop Protection’s global head of production and supply and president of Syngenta UK, previously 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 savings identified would still “fall short in bridging the site’s competitiveness gap”.
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