Fish plant closes with loss of 130 jobs

Published on Thursday 27 November 2008 21:03

THE Western Isles suffered a massive economic blow yesterday with confirmation that its largest private employer was closing its main factory.

Lighthouse Caledonia will shut its fish processing base in Stornoway by 31 December with the loss of 130 jobs.

The company revealed in September it was considering closure as the plant had become inefficient. OddGeir Oddsen, the firm's managing director, said: "We deeply regret the job losses at our plant in Stornoway. Throughout our first year of operation, we have had to make some very tough strategic decisions to ensure the long-term sustainability of the business in Scotland.

"Over the last year we have made great strides in developing solid operational performance in producing quality Scottish farmed salmon with an enhanced responsibility to environmental performance, and the company has established a strong position in an important growth industry with great potential."

He added: "We are committed to maintain production volumes of high quality Salmon, 25,000 tonnes will be farmed on the West Coast of Scotland and the Western Isles in 2009."

Lighthouse said it would continue to work closely with Highlands and Islands Enterprise, local and national politicians and government agencies to explore opportunities for processing in two years time when the volume from the company's northern region is ready for harvesting.

The news was relayed to workers after a meeting held in Stornoway, arranged by local MP Angus MacNeil.

Willie Nicolson, one of the employees, said later: "This is a total, total shock. It is a huge blow and will have a knock-on effect on Polybox (packaging supplier] and hauliers.

"The closure of the factory is a disaster. Now 2009 is written off."

Mr MacNeill said: "I am saddened and disappointed with the current state of the company.

"They need to raise between 12 and 15 million between now and the end of March 2009.

"There will be no processing done by the company in Lewis in 2009.

"It is hugely disappointing that the company is in such a weak financial position with a lot of debt. I wish the company well in their efforts to overcome these financial burdens.

He added: "This is a huge setback for the economy of the islands, we have to also remember that 130 jobs will be lost as a result of this decision, my heart goes out to all these people who will be losing their jobs."

Lighthouse Caledonia was created in late 2007 following the merger of the Scottish operations of Panfish, Fjord Seafood and selected Marine Harvest assets.

After the closure of the processing plant at Stornoway it will remain one of Scotland's largest fish farming businesses.

The company presently employs 346 people in Scotland, including 35 in fish farming in the Western Isles.