A major Fife manufacturer has confirmed plans to move from Falkland to a new base in Kirkcaldy.
Smith Anderson, the UK’s largest maker of paper bags, says it will switch operations to a single-storey production warehouse at the Mitchelston Industrial Estate within a year.
The move is seen as a significant step towards safeguarding the longer-term future of the company, which employs just under 200 staff. It is hoped the change will expand the business’ capacity and lead to more jobs.
Workers were told the news on Wednesday afternoon by company chief executive Michael Longstaffe, who reckons moving from the Falkland plant to the Rosslyn Commerce Park will boost the company’s prospects.
”This is a very bold step to take during such challenging times, but we are extremely confident that this was an opportunity not to be missed,” he said. ”An energetic and loyal workforce is our greatest asset and they will function far more efficiently within a single-storey production hall with brand new facilities.
”It has been suggested in the past that we operate within a five-floor rabbit warren far from ideal for modern, lean manufacturing,” he said.
The latest development marks the start of an exciting new chapter in the history of a company established over 150 years ago. It also signals an impressive turnaround from the challenging times of 2006, when the group lost its paper-making operation in Leslie with the loss of over 100 jobs.
Since then, recent significant investment in new machinery and an aggressive cost-cutting exercise have helped create a climate which has made the investment at Kirkcaldy possible.
It is understood Smith Anderson completed the purchase of the Rosslyn Commerce Park site on Friday and, although the cost of doing so has not been divulged, the firm benefited from the support of Scottish Enterprise and Fife Council after securing a Regional Selective Assistance Grant.
Mr Longstaffe said the 120,000 sq ft Kirkcaldy site, just off the A92, is better from a logistical point of view and supports its targeting of international trade.
The company produces 50m paper bags every week and the move is seen by bosses as the best way forward to bring about further growth.
”Having just completed our financial year, we are confident that turnover will exceed £20m for the first time,” he said. ”This is founded on secure contract volumes with the UK’s best quick-service retailers, powered by a focus on added value and driven by impressive innovation.”
Having moved half its operation to Falkland in 2007, Smith Anderson is well versed in relocation, although Mr Longstaffe said the move will take up to a year to complete.
He added: ”We have the ability to operate fully from both sites during the transition, which was key to the success of the initial project plan.”
Mr Longstaffe said the staff, who were briefed on the move at 3pm yesterday, had reacted to the news ”very positively.”
Kirkcaldy MSP David Torrance also welcomed the announcement, saying it is “great news and a welcome boost to the local economy.”