Takeover prompts concerns for Scottish jobs

Published on Friday 18 July 2003 01:00

SIMCLAR, the Fife-based electronics group, has taken over rival AG Technologies, which has manufacturing plants in Mexico and Asia, for £2.1 million.

The move sparked fears among trade unions that future jobs created by Simclar will be located in the cheaper overseas sites, but the Dunfermline firm insisted it had no plans to transfer jobs from Scotland. Earlier this year, the group axed 500 jobs in Gourock, and currently has a Scottish workforce of around 1300.

Simclar, founded by Sam Russell in 1976, already boasts facilities in the United States, Europe and China, employing over 700 people overseas.

Mr Russell, who along with his wife Christina wholly owns Simclar, said he plans to consolidate the established strengths of AG Technologies’ operation in Mexico by adding sheet metal and plastic injection moulding processes, enabling the group to provide a "complete low-cost production solution for the North American market".

He said the group, which is forecasting a turnover of 180m this year, will look to double the size of the Mexico plant to around 100,000 sq ft in the short term, before further expanding it to 150,000 sq ft.

A spokesman for the Amicus trade union said: "Simclar has built up a reputation and strong order book from a Scottish base and it would be worrying if they were to divert all their future resources into expanding abroad rather than back here in Scotland."

But a Simclar spokesman said: "We are a Scottish company and we have no plans to change our Scottish base."

Simclar specialises in assembling computer systems, cables and printed circuit boards for the major computer equipment manufacturers.

The Gourock job cuts came with the closure of the Fullarton Industries plant, which Simclar bought from Laird Group in a 30m deal last summer.

The move was sparked by computing giant Sanmina’s decision to pull a contract from the plant.

Aside from Fullarton, Simclar has bought two United States companies - Techdyne and Lytton - in the past two years in deals worth a combined sum of about 10m.