Triple jobs blow for Scotland

Paper prices are said to be under pressure

Hundreds of workers in Scotland are facing redundancy following three separate announcements.

The paper-making firm Inveresk said it was planning to close its factory near Bathgate in West Lothian, which employs 152 people.

Cloth and fabric supplier Yorklyde is shutting a plant in Langholm with the loss of 30 jobs.

And engineering firm BAE Systems has announced 110 compulsory redundancies at its shipyards on the Clyde.

Inveresk: Prospects "enhanced"

Unions said the move was a "bolt from the blue" for steelworkers at the Scotstoun and Govan yards.

The closure of Westfield, which makes coated paper for labels, came as Inveresk announced plans to quit the label papers business.

The company will focus all its attention on the development of its remaining operations, the three mills at Caldwells in Fife, Carrongrove in Stirlingshire and St Cuthberts in Somerset.

Westfield only has a capacity of 30,000 tonnes per annum, which means it cannot compete effectively in the marketplace, according to Inveresk.

"Prices are continuously under pressure and... there is little prospect of growth," a statement said.

Trading profitably

The label paper business had been the weakest part of Inveresk. It posted an aggregate loss before interest for the past three years of £3.6m.

Excluding Westfield, Inveresk achieved operating profits of about £40,000 for the first four months of this year and has been trading profitably at the pre-tax level.

Executive chairman Ken Minton said: "The intention to disengage from the labels business together with the closure of the Westfield site, comes after extensive efforts over many months to secure the long-term viability of this part of the Inveresk group.

The past year has been one of the most unpredictable I can ever remember

Charles Brook
Yorklyde

"This has not proven possible and the group must concentrate on developing and improving its remaining businesses, all of which are viable and performing satisfactorily.

"Following the closure of Westfield, the prospects for the group are greatly enhanced."

Finance director David Harrison said Inveresk was starting consultation with unions, but said the group was proposing that all staff at the mill would leave.

Over the past year it has cut about 150 jobs, including 70 when it closed its Kilbagie paper mill in Alloa, Clackmannanshire.

Second phase

The redundancies at BAE Systems are part of the company's restructuring plans, which were announced last July.

The company initially said 1,000 jobs would be lost, but that number was reduced to 450 following consultation with the Clyde Taskforce.

The first 48 workers were released in January, and the second phase of the redundancies will take effect from 7 May.

Jobs are to be shed at Govan and Scotstoun

Acting managing director Robin Imms said: "We are continuing to make every effort to reduce the numbers at risk of compulsory redundancy and it is extremely unfortunate that we have reached this position.

"We have a number of programmes in place to support those leaving the business."

However, the GMB union's Clydeside engineering organiser Jim Moohan described the announcement as a "bolt from the blue".

He said the union was seeking immediate talks with management to reduce the impact of the announcement.

Meanwhile, Yorklyde said the manufacturing from its Langholm plant would be transferred to its Peebles facility.

Fall in profits

It said that the move should save the company, which supplies Gucci, Burberry and several major airlines, about £400,000 a year.

Chairman Charles Brook said the restructuring followed a sharp fall in profits due to the impact of the 11 September terror attacks on demand from its retail and airline customers.

"The past year has been one of the most unpredictable I can ever remember," he added.

The company, which is based in Huddersfield, employs about 380 people in total.