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Plant closures mean 420 job cuts | Plant closures mean 420 job cuts |
(about 1 hour later) | |
A manufacturing company has closed two factories with immediate effect, with the loss of 420 jobs. | A manufacturing company has closed two factories with immediate effect, with the loss of 420 jobs. |
The Simclar Group - an electronic components manufacturer - has closed its sites in Irvine and Kilwinning. | The Simclar Group - an electronic components manufacturer - has closed its sites in Irvine and Kilwinning. |
In a statement, the Scottish firm said it had been unable to remain competitive due to pressure from low cost economies and falling orders. | In a statement, the Scottish firm said it had been unable to remain competitive due to pressure from low cost economies and falling orders. |
The company, which is based in Dunfermline, also blamed uncertainty in the manufacturing sector. | The company, which is based in Dunfermline, also blamed uncertainty in the manufacturing sector. |
Simclar (Ayrshire) will now be placed in administration. | Simclar (Ayrshire) will now be placed in administration. |
Jim Mather MSP, the SNP's enterprise spokesman, said: "This is devastating news for those affected. | Jim Mather MSP, the SNP's enterprise spokesman, said: "This is devastating news for those affected. |
"Ministers must now use all the powers at their disposal to support these skilled workers in finding alternative employment opportunities." | "Ministers must now use all the powers at their disposal to support these skilled workers in finding alternative employment opportunities." |
'Impossible' situation | 'Impossible' situation |
Staff were told of the closure at a morning meeting with management. | Staff were told of the closure at a morning meeting with management. |
A Simclar spokesman said: "The current market conditions have made the continued operation of Simclar (Ayrshire) impossible. | A Simclar spokesman said: "The current market conditions have made the continued operation of Simclar (Ayrshire) impossible. |
This is a human tragedy for the families involved Irene Oldfather MSP | This is a human tragedy for the families involved Irene Oldfather MSP |
"Simclar has made every attempt to restructure and save the business but it would not be in the best interests of the group as a whole to continue to do so in the long-term. | "Simclar has made every attempt to restructure and save the business but it would not be in the best interests of the group as a whole to continue to do so in the long-term. |
"The company will work with the local enterprise and employment agencies to offer information and support to those affected by this closure in their search for new employment." | "The company will work with the local enterprise and employment agencies to offer information and support to those affected by this closure in their search for new employment." |
Local MP Brian Donohoe said news of the job losses was a great shock. | Local MP Brian Donohoe said news of the job losses was a great shock. |
He said: "Naturally this is a real hit for the constituency but I am confident it will not undermine its established reputation as a favourable business location." | He said: "Naturally this is a real hit for the constituency but I am confident it will not undermine its established reputation as a favourable business location." |
Irene Oldfather, MSP for Cunninghame South, said: "This is very bad news for the local economy. | Irene Oldfather, MSP for Cunninghame South, said: "This is very bad news for the local economy. |
"It is going to be quite a challenge to retrain and upskill these people and get them back into work. | "It is going to be quite a challenge to retrain and upskill these people and get them back into work. |
"This is a human tragedy for the families involved." | "This is a human tragedy for the families involved." |
Long-term recovery | |
Scottish Conservative enterprise spokesman Murdo Fraser said it was a serious blow for the Ayrshire economy. | |
He said: "I call on the Lib-Lab pact to take steps to reduce the costs of doing business in Scotland and give our manufacturing sector a much needed boost, such as an aggressive purge of red tape and the de-nationalisation of Scottish Water so as to drive down charges. | |
"Only then can we hope to see the long-term recovery of our valuable manufacturing base, which has been further damaged by today's announcement." | |
Simclar Group has facilities in Europe, the US, Mexico and China and employed about 1,800 people worldwide. | Simclar Group has facilities in Europe, the US, Mexico and China and employed about 1,800 people worldwide. |
The group said its site in Dunfermline, where 300 workers are employed, would continue to operate. | The group said its site in Dunfermline, where 300 workers are employed, would continue to operate. |