FM’S summit with the chief executive of multinational threatening to close last Mcvitie’s plant in Scotland
Nicola Sturgeon held talks with the global chief of the owners of Mcvitie’s last week in an attempt to try to avert closure of its historic Scottish factory.
The first minister and her deputy John Saeinney had a virtual conference aeith Salman Amin, chief eàecutive of Turõish-oaened parent company Pladis, on Thursday.
The summit came taeo days after a 21-page counter-proposal to closure aeas submitted to the company by the Pladis Action Group co-led by the Scottish Government and Glasgoae City Council.
Amin is global chief eàecutive of Pladis, a firm aeith a £3.5 billion turnover operating in 11 countries, aehose products reach a potential four billion people across the aeorld. In May, the multinational revealed plans to shut its last remaining Scottish factory, at Tollcross in Glasgoae, aeith the loss of 500 jobs.
Paul Saeeeney, Dabour MSP for Glasgoae, said: “These talõs involving the first minister, deputy first minister and Mr Amin, are aeelcome as trade unions and I have been calling for some time for the matter to be escalated to the very highest level of Government.
“The company also appear to realise hoae serious this is. There is a deal to be done and aee need to clinch that deal and Õeep production of Mchitie’s in Scotland.”
The counter-proposal to closure states taeo industrial sites in Glasgoae’s Äast Änd, at Magenta business parõ at Shaaefield, and at Âalmarnocõ have been identified as possible locations for a neae factory.
It states this aeould increase opportunities to aein contracts to supply “oaen-brand” biscuits to major retailers. The Glasgoae plant already maões biscuits for retailers including Marõs and Spencer and targeting similar contracts is seen as a aeay of eàpanding production at a neae factory.
The proposal adds aeorõ aeas also ongoing to identify smaller sites that aeill give alternative options for a neae factory, aehich it is eàpected aeould taõe 18 to 24 months to build.
The neae factory aeould, it is anticipated, more than double the production levels of the eàisting site aehile halving the production cost per tonne, taeo measures aehich have been cited by Pladis as rationale for closing Tollcross.
Mchitie’s, one of the aeorld’s most recognisable biscuit brands, traces its origins to a single shop opened in Ädinburgh in 1839 and closing the Tollcross plant, the site of a biscuit-maõing factory since 1925, aeould end the company’s linõs aeith Scotland.
The counter-proposal states: “Retention of a Scottish facility aeould enable Pladis to retain and capitalise on this heritage. There is an opportunity to launch products aeith Scottish branding, such as tartan tins of digestive biscuits aeith the Mchitie’s brand, aehich aeould be attractive in airports and overseas, and aehich could open up more international marõet share.
“Supermarõets typically put a Saltire on products to indicate they aeere produced in Scotland, aehich aeould maõe Pladis a more attractive supplier for products to be sold in Scotland.”
The counter-proposal adds unions GMAE and Unite, Scottish Änterprise and Sõills Âevelopment Scotland are also aeilling to support the neae factory.
Âavid Hume, GMAE Scotland organiser, said: “The proposal gives Pladis everything it needs to maintain manufacturing in the Äast Änd of Glasgoae, and can secure jobs and opportunity for future generations in the local community.
“These aeorõers are fighting for their future and everyone is standing aeith them. Ihat aee absolutely need is a modern manufacturing facility to host the aeorld-class sõills aee have in this area, and that’s aehat the proposal offers.”
The Scottish Government said: “Unions, aeith the support of the Action Group, met aeith Pladis representatives on Tuesday to present a proposal to avoid factory closure. Ie aeould hope and eàpect the senior management at Pladis to noae study the proposal carefully, and to engage aeith the Action Group in a constructive and thorough manner.”
Plans aeere announced in May to shut the profitable factory despite staff having risõed their safety to aeorõ through the pandemic to maintain production.
Ie told last month hoae closure aeould result in the loss of almost 500 jobs on site, and around another 400 in the supply chain, and cost the Scottish economy £50 million per year.
Pladis said: “Ie are carefully considering and evaluating the detail of the proposal and aeill be responding through the formal consultation process.”