Syngenta has announced a proposal to cease operations across its Grangemouth site and has begun formal consultation with union representatives and employees. If the proposal is implemented, it could affect 377 employees.
The company said no final decision has been made. It said it remains committed to genuine consultation with trade unions and employee representatives, and to considering alternative options or paths forward for the site.
Syngenta said it has been reviewing its Grangemouth operations against its supply chain strategy for some time, amid increasing international competition and challenging energy positions. It said the site faces high costs and remains significantly more expensive to operate than other production sites, despite substantial efforts to reduce the difference. The company said it had identified areas with savings potential and explored options for its formulation technologies, but these would still fall short of closing the site’s competitiveness gap.
Mike Hollands, Syngenta Crop Protection’s Global Head of Production and Supply and 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. 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 recognises this is a very difficult time for its employees. It said their well-being and support are its priority, and that it will keep providing the necessary support during the next phase of the process.
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In an update to its statement on 2 October, the company addressed the Scottish Enterprise grant awarded to the site. It said the grant was awarded in support of a capital investment of close to £15 million that Syngenta itself made at the site, as part of efforts to diversify activity and try to secure the site’s future. Syngenta said it has so far received around half of the grant allocation, about £1 million. It said it intends to repay that in full to Scottish Enterprise if it ceases operations at Grangemouth after consultation.
Syngenta said the UK remains an important location globally for the company. It employs more than 2,000 people in the UK, focused on research and development, production and supply, and commercial activities.
