150 jobs lost in double whammy for Scottish manufacturing sector

More than 150 jobs are likely to be lost in a double blow for Scotland’s manufacturing sector.

Liquidators revealed that MJ Ventilation suffered debts as a result of the recent collapse of Carillion. Picture: Yui Mok/PA Wire

MJ Ventilation, a manufacturer of ventilation systems based in Coupar Angus, has fallen into liquidation with the loss of 81 employees, while Argyll factory CS Wind is to cut up to 73 jobs due to a thinning order book. Both businesses recorded profitable trading last year.

Liquidators said MJ Ventilation, which turned over £7 million in 2018, had been suffering from cash flow problems compounded by “significant bad debts” arising from the recent insolvencies of Carillion and McGill Electrical.

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The business has now ceased trading and all employees have been made redundant.

Blair Milne of Campbell Dallas, provisional liquidator of MJ Ventilation. Picture: Fraser Band

Blair Milne of Campbell Dallas, who has been appointed provisional liquidator, said: “We will now be marketing the company’s assets for sale, including plant and vehicles, and would encourage interested parties to contact our Glasgow office as soon as possible.”

This comes as wind tower manufacturer CS Wind said it is to cut as many as 73 jobs at its Campbeltown factory, representing around three-quarters of its workforce.

'Major blow to renewables'

CS Wind, which posted pre-tax profits of £7.1m last year, said the cuts are a result of “present gaps” in its order book.

The factory was taken over by South Korean group CS Wind in 2016 and is the only UK facility manufacturing onshore and offshore wind towers. CS Wind has since invested £27m in the factory, which has contracts with Orsted and Vattenfall.

Charlie Macdonald, regional industrial officer at union Unite, said: “The news of the redundancy notices affecting three quarters of the workforce at CS Wind in Campbeltown is a major blow to Scotland’s renewables manufacturing capacity.

"CS Wind is another example of the spaghetti bowl of multi-national interests calling the shots in our nation’s renewables sector with scant regard for workers and communities.”“There needs to be urgent intervention by the Scottish Government because if the scale of these job losses goes unchallenged not only is there is a major cloud over the future of the factory in Campbeltown but also over Scotland’s green manufacturing capacity.”