Dundee was delivered a jobs bombshell on Tuesday night when Johnson Matthey Battery Systems revealed it could close its operation with the loss of all 60 jobs.
The drastic move is one of three options being considered by the division of the world’s biggest auto catalysts maker.
It seems certain that most if not all of the jobs at the premises on Nobel Road, Wester Gourdie, will go.
The news came out of the blue. Only two months ago the company said the Dundee operation was on the road to profit.
Other possibilities include making most of the Dundee staff redundant and retaining a small number at a slimmed down operation elsewhere in the city.
The Dundee business could also be merged with another Johnson Matthey site in England and the few retained Scottish workers invited to relocate.
General manager Anne Risse said the former Axeon battery company had not delivered the results expected in a market that had seen many ups and downs.
Johnson Matthey felt it had to act “to make sure the business is successful and sustainable for the future”.
She continued: “Employees at the division’s three sites in the UK were called to meetings earlier today to hear our proposals, and we are now in a consultation period.”
A fuller statement would be issued today, she added.
One of the Dundee workforce, who declined to be named, said: “We were all called to a meeting at the factory.The company stated that they are beginning the statutory 90-day consultation period as they look to restructure the business.
“It seems most of the jobs will go and the Dundee site may even close. We are all stunned.”
Johnson Matthey bought Axeon in 2012 and said its new battery division would work on projects for major car manufacturers.
The parent company had not expected the Dundee operation to make a profit in the first few years because of the nature of its business.
A spokeswoman told The Courier in August, however: “We are now expecting it to break even excluding acquisition costs in 2015-16.”