THE West of Scotland was on the brink of losing another industrial
landmark last night with Tate & Lyle announcing a proposal to shut its
sugar refinery at Greenock.
Its likely closure, in 1997, will mean redundancy for almost 170
workers and the end of Greenock as the town of ''sugar and ships''.
If Tate & Lyle ratifies plans to transfer production to its factory in
London, the only other sugar refinery in Britain, a 250-year tradition
at the UK birthplace of sugar refining will end.
Shipbuilding has long since ceased to be a feature of the Greenock
docks, although Ferguson's yard at Port Glasgow nearby has been
relatively successful in recent years.
Tate & Lyle blamed yesterday's announcement on the need to cut
operating costs, under pressure from refining competitors in Europe, and
from British Sugar, which processes sugar beet.
It said expansion at the Thames plant would require investment of #8m,
against #15m at Greenock, and said the proposed rationalisation would
save a further #3m in annual expenditure.
Mr John Walker, managing director of Tate & Lyle Sugars, said in a
statement: ''I deeply regret the distress and anxiety this will cause
our employees and their families. We have begun full consultation and
will take a final decision only when this process is concluded.''
The company, which was part-founded by the Lyle family early this
century, closed its Walker refinery in Greenock in 1979, leaving only
the Westburn refinery in production. Acquired by the firm in 1976, the
latter will celebrate a century of near-continuous operation next year.
Tate & Lyle said that, even if it closed the refinery, its United
Molasses import and distribution terminal, which employs nine people in
the town, would remain.
Ms Patricia Jamieson, raw sugar divisional director, admitted that the
announcement had caused ''shock and distress'' among the workforce but
said an exhaustive review by the company had identified no viable
options other than closure.
If that decision was finalised, she said, staff would be offered
''generous'' redundancy payments of four times the statutory minimum,
and opportunities for vocational retraining.
However, the news received a predictably angry response. MEP Hugh
McMahon said he was ''absolutely incensed'' at the decision which, he
forecast, would also undermine employment for hundreds of associated
workers in Greenock.
''Tate & Lyle has taken good profits from the people of the town over
many years but it is now behaving like a typical multinational company.
This will have a knock-on effect in the local food and drinks
industry.''
The leader of Inverclyde district, Councillor Harry Mulholland, said:
''It's devastating and we are extremely disappointed, especially at a
time when we have been working hard to attract other companies to the
area.''
Mr Jim Elsby, Scottish secretary designate of the TGWU, which
represents most of the Greenock workforce, said the union would be
examining the company's financial figures and hoped to mount a campaign
to overturn the proposal.
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