Agrochemicals group Syngenta is proposing to close its manufacturing operations at Grangemouth in Scotland, threatening 377 jobs.
The site makes active ingredients for a range of fungicides and herbicides, all of which are exported. But the materials have been off-patent for some time and can now be produced more cheaply by third parties. A spokesman said that there had recently been a significant expansion of generic production capacity in international markets. As a result, there are no plans to move production from Grangemouth to other Syngenta sites.
In a statement, Syngenta said it had been reviewing the Grangemouth operations against that increased competition and what it described as ‘challenging energy positions’.
The company said it had identified areas with savings potential and explored options for its formulation technologies, but these efforts were still not enough to bridge the gap in the site’s competitiveness.
Just last year the company announced an almost £15 million investment package, including a £2.2 million grant from the Scottish government, to create a formulation, fill and pack facility to diversify operations. That new plant will also close under the proposals. Syngenta says it will return the proportion of the grant already received.
Mike Hollands, president of Syngenta UK 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.’
However, the company stresses it has not made a final decision and will continue to consider options for the site.
The site has been making speciality chemicals in different forms for 100 years, initially as part of ICI. If the shutdown is confirmed, it will add to the 400 jobs lost at Grangemouth last year after the closure of Petroineos’ oil refinery.
Earlier this year, Syngenta stopped production of paraquat herbicides at its other UK manufacturing site in Huddersfield, with the loss of 90 jobs. These products were also destined for export, since paraquat is banned in the UK and EU, and face significant international generic competition. At the time, Syngenta said it was investing in other processes at the Huddersfield site.
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