Jobs go after plant sale fails

Talks have been going on since June

Kvaerner Energy in Clydebank is to close with the loss of 200 jobs after the collapse of a buy-out plan.

The anglo-Norwegian engineering and construction group said that it had decided to close the manufacturing plant, which makes gas turbine equipment for power stations.

A sale was agreed in August with Newco, led by former Kvaerner Energy marketing director Bob Helburn.

Union officials said they were "angry and disappointed" at the failure.

GMB does believe that Kvaerner could have secured a deal with Newco, and Kvaerner had a moral obligation to the workers at Clydebank to do so

Jim Moohan, GMB union

A Kvaerner spokesman said: "Despite protracted negotiations with Newco since June of this year, it has not been possible for them to meet the terms of a potential agreement to acquire the Clydebank manufacturing facility.

"Kvaerner's flexible approach, its willingness to agree to a number of time extensions, a commitment to making exhaustive efforts to secure a deal - and to preserve jobs - was also tangibly underwritten by the group.

"This included a package of direct support from Kvaerner approaching £310m (approximately half of which was to be paid in cash).

"The option for disposal of the business to Newco, which was considered to be marginally favourable by Kvaerner, has progressively worsened since negotiations commenced, and the company has sustained further heavy losses during the last four months."

Worldwide disposal

Kvaerner first announced its intention to dispose of its worldwide energy activities almost two years ago.

The disposal of the larger part of the company's energy business at Clydebank was completed in March this year with a sale to General Electric which saved about 400 jobs.

The spokesman said: "Since then, exhaustive efforts have been made by the group to seek a disposal of the remaining workshop activities.

Workers now face redundancy

"The manufacturing facilities are to be closed by the end of this year.

"Kvaerner deeply regrets the decision to close the Clydebank facility."

The company paid tribute to the workforce which it said had demonstrated "considerable patience and understanding" during a period of uncertainty through the disposal process.

Agreements have been drawn up with trade unions to provide enhanced redundancy packages and consultations with employees are to start immediately.

'Moral obligation'

Jim Moohan, engineering spokesman for the GMB union in Scotland, said: "GMB does believe that Kvaerner could have secured a deal with Newco, and Kvaerner had a moral obligation to the workers at Clydebank to do so.

"It is a very sad day for manufacturing on the Clyde that this historic industrial concern is to be no more."

Tony Worthington, Labour MP for Clydebank and Milngavie, condemned the job losses.

He said: "This is the latest blow to the area and it is particularly cruel as it is not necessary. Kvaerner has been messing around."

Meeting sought

Mr Worthington said he would be seeking a meeting with Enterprise Minister, Wendy Alexander, to discuss how the jobs could be saved.

In May, workers staged a "work-in" at the plant - formerly the John Brown shipyard - to protest at proposals to sell the company to Manchester firm Texas.

Manual workers barred senior management from entering the main factory.

Kvaerner Energy is part of the Kvaerner Thermal Power Group, which includes operations in Norway and the Middle East.