A SCOTTISH manufacturer which drives the bulk of its business from the Scotch whisky industry has defied the uncertainty sparked by the Brexit vote to forge ahead with a multi-million pound expansion plan.

Port Glasgow-based McLaren Packaging, whose clients include drinks giant Diageo, is investing £3 million to build a luxury packaging facility in Stirling.

Site works are underway on the greenfield site at Broadleys Business Park, where family-owned McLaren is developing a unit to offer bespoke packaging designs for luxury Scottish food and drink products. The unit, part of the company’s Blue Box Design subsidiary, will add an initial 18 jobs to its headcount over a four-year period. It currently employs 135.

Managing director Donald McLaren, who runs the business with his brother Michael, said the investment will help safeguard jobs at its Port Glasgow site. And he declared the commitment reflects the underlying demand for its services from key customers, notably in Scotch whisky. However, he said the uncertainty sparked by Brexit vote has caused it review its options.

Mr McLaren, whose father established the business in 1979, said: “It is a big a move for us as a business – it is one of the biggest investments we have made in the last 20 years. It’s really confidence in what we are doing just now.

“The business is growing very strongly. We have focused the business around the premium end of the packaging market. We do a lot with the Scotch whisky industry, Scottish food, luxury products, and all those areas are growing significantly.”

Asked how closely the owners came to scrapping their plans because of Brexit, Mr McLaren said the event had caused a “wobble”.

However, he said the demand for premium products such as Scotch whisky around the world gave it the confidence to be “bold”.

“We had to review things because we didn’t expect the vote to go the way it went, like most people,” Mr McLaren said. “We had to look and re-assess, and the view coming out of that was that we should continue, because the underlying demand is still there. We are supplying packaging to products that are ultimately going to be exported out of the UK. And exports are growing.

“The economy is strong in manufacturing and we think that is going to continue, certainly in the short to mid-term. Longer term, who knows?”

That uncertainty hangs over future trading relationships with Europe, and elsewhere in the world because of geopolitical tensions, also gave impetus to the move. Mr McLaren said there is a growing trend for companies to keep their supply chains closer to home. But the broader growth pattern for whisky continues to be favourable, which he said was illustrated by Diageo’s recent decision to bring its Port Ellen and Brora distilleries out of mothballs.

“The export side of whisky was growing anyway,” he said. “I think Brexit in the short term, with what is happening with the currency, is [having] a positive effect, so we are seeing a bit of strong growth just now. But mid to long-term is more unknown.

He added: “Scotch whisky has been loved over the world for hundreds of years, and I don’t think that’s going to change.”

The Stirling investment, which has been supported by Regional Selective Assistance through Scottish Enterprise, comes at period of rapid growth for McLaren. It is on course to increase turnover by at least 20 per cent this year to beyond £19 million. And the company is growing so quickly that its target of turning over £20m by 2020 is likely to be reset.

Duncan Robertson, managing director of Blue Box Design, said: “This new facility will greatly improve ‘speed to market’ for our customers by reducing the packaging development cycle time from concept to delivery, thereby delivering production efficiencies and cost savings.

“It will expand our production capacity significantly, enable us to retain highly skilled staff and create new skilled jobs in Central Scotland for young people.

“We see tremendous long-term value in a facility centrally-located within Scotland, between Edinburgh and Glasgow, close to the major operations of the whisky and food industries.”

Rhona Allison, director of company growth at Scottish Enterprise, said: “Demand for Scottish food, drink and other premium produce is on the increase as international consumers develop an appreciation of the quality and provenance of products backed by the Scottish brand. It is great to see the impact this is having on the Scottish supply chain.

“McLaren Packaging is a good example of a company benefitting from the trend towards luxury and premium Scottish produce and it is fantastic to be able to support this ambitious company as it enters its next growth phase.

“This funding will help the company expand its footprint in Stirling and provide a welcome increase in jobs. We look forward to continuing to work with the team at McLaren Packaging as it pursues its ambitious growth plans.”