Devro proposes up to 130 job losses in Scotland

Collagen sausage casing supplier Devro has announced up to 130 jobs could be cut across its Moodiesburn and Bellshill plants in Scotland.

Employees have entered into a 45-day consultation period as part of the company’s plan to refocus and streamline its manufacturing worldwide.

According to Devro the proposals are consistent with its long-term plan to modernise it manufacturing base.

The announcement today that staff numbers look set to be cut by a quarter, from around 520 currently, is part of its plan to concentrate most of the production at the company’s newest and most cost-effective technology. "This would mean a reduction in manufacturing capacity at the Scottish plants," said the firm in a statement today (21 May).

Speaking from Devro’s Moodiesburn site earlier today, Peter Page, chief executive of Devro plc, said: "Today’s announcement follows several months of careful consideration and detailed analysis of our manufacturing facilities around the world. We have looked at all options.

"Many factors have influenced our thinking, most importantly trends in consumer demand, future growth prospects and how we can best take advantage of new opportunities in emerging markets.

"These are very difficult proposals to make but they are the right ones for the future of Devro.  By taking this action now, we can maintain a competitive advantage and plan for a strong business based in Scotland, having invested over £30 million here since 2008."

Workers at the site are said to be devastated. Tam Connarty, industrial officer at Unite, said: ""These are dark times for manufacturing jobs in Scotland and our crucial food manufacturing sector is particularly bearing the brunt of this ongoing decline.

"We’re constantly being told that an economic recovery is underway but I can tell you it’s not being felt by working people and their families in towns and communities across the likes of Lanarkshire.

"Unite will do everything we can to offset as many of these redundancies as we can but the fact is we are swimming against the tide on our own." 

The company has been in contact with the Scottish Government and Scottish Enterprise as part of the process, and it will work with them throughout the consultation period.

In March MTJ reported that pre-tax profits at Devro had fallen 4.5% to £37.5m for the full year ended 31 December 2013.


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