A specialist Scottish chemicals plant has delivered a pre-Christmas blow after announcing it is to close with the loss of 66 jobs.
The Grangemouth-based Dow Chemical facility is said to have suffered a “significant deterioration of demand” for its impact modifiers, a specialist product used in the packaging and construction industries.
The company, located close to the INEOS chemicals plant which was at the centre of major industrial unrest earlier in the year, said the proposal to shut the facility had arisen out of a comprehensive review of the Dow Plastics Additives business.
The firm said the decision was based on the site’s financial performance, weak demand and the challenging wider economic conditions.
Dow has informed staff of the closure proposal but a formal period of consultation over the redundancies will not take place until the New Year.
Dow said that in the event of the closure being ratified following the consultation, it would work with local agencies in an effort to find new jobs for its highly skilled staff.
“Naturally we are deeply saddened by the news that we are proposing to stop production here at Grangemouth,” site director Lluis Argilaguet said.
“We have a fantastic team and we have fought hard to keep the site as competitive as possible in an increasingly tough operating environment.
“However, the current economic climate means we feel we cannot sustain an economically viable site. I understand that this is a difficult time to hear such news.
“Over the coming days our priority will be to support employees, answering questions, talking with them and just being available to listen if that is what they need.
“In 2014, we will begin the formal employee consultation process.”
Grangemouth MP Michael Connarty said it was “saddening news” coming so close to Christmas and on the back of the recent troubles faced by INEOS.
“Grangemouth’s Dow Chemical is the latest victim of the outrageous energy price hikes,” Mr Connarty said.
“The biggest factor in these closures is the sheer cost of running their company in the current climate. Between the Chancellors greed in milking carbon taxes for the treasury and the greed of the energy companies, together they are destroying Scottish energy companies.”