American chemical giant Dow has announced plans to close its manufacturing site in Grangemouth.
The firm has informed 66 employees at the site in Wholeflats Road, which makes MBS impact modifiers used in the packaging and building and construction industries, it was proposing to cease manufacturing and shut the facility.
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A Dow spokesman said: “The proposal to close the site is the consequence of ongoing economic uncertainty, which has resulted in a significant deterioration of demand. When coupled with increases in manufacturing costs, competition, fluctuating raw material and energy prices, the facility has been operating in an increasingly challenging environment.
“Only after a comprehensive review of the Dow Plastics Additives business strategy was the proposal to close the site developed. It was based on financial performance, challenging economic conditions and ongoing weak demand.”
In the new year the site will enter a period of consultation with employees where they will discuss the closure proposal in more detail. In the event of closure, Dow site leaders will work with local agencies to help in the re-employment of their highly skilled people.
Site director Lluis Argilaguet said: “Naturally we are deeply saddened by the news we are proposing to stop production here at Grangemouth. We have a fantastic team and have fought hard to keep the site as competitive as possible in an increasingly tough operating environment.
“However, the current economic climate means we feel we cannot sustain an economically viable site. I understand this is a difficult time to hear such news. Over the coming days our priority will be to support employees, answering questions, talking with them and just being available to listen if that is what they need.
“We will begin the formal employee consultation process in the new year.”