Calachem: 100 jobs at risk as Grangemouth company enters into consultation with staff

Around 100 jobs could be lost at a Grangemouth business.

Contract chemical manufacturer, CalaChem, has entered a six-week consultation period with its employees which could see the current workforce of 156 cut to around 50 by next summer.

It comes as the company moves out of contract chemical manufacturing – which is says is no longer sustainable - and into managing estates for tenants on its site.

Calachem said it would do everything it could to minimise compulsory redundancies.

Calachem Ltd's factory (Pic: Michael Gillen)

Roles in the new organisation, additional training and voluntary redundancy packages would all be taken into account when reducing the head count.

The Earls Road based company blamed the loss of a major European contract, COVID disruption and overseas competition for its decision to cull the jobs.

It said it was “a difficult decision” to move away from chemical manufacturing.

Instead, the business will focus on estate management for current and future tenants on its site; the provision of energy, utilities, and waste management services; and health, safety, environmental and risk management services.

Colin Loudon, managing director, said: “Over the past few months, the board has been working tirelessly to develop a sustainable strategy for the business, and in the current climate we are forced to focus on the areas that are profitable.

“Unfortunately, this is not contract chemical manufacturing – through no fault of our talented workforce, some of whom have been with us for many years.

“An unfortunate sequence of external factors beyond CalaChem’s control, including loss of a major European contract, Covid-19 disruption, competition from overseas and required equipment investment have all had an adverse impact on our business.”He added: “CalaChem has a robust future, but this does not lessen the blow for the business and for affected employees. “