New US owner of Clyde Union Pumps axes 90 jobs in Glasgow

THE new owner of Clyde Union Pumps, the former Weir Group business acquired from Scots entrepreneur Jim McColl, has announced more than 90 job cuts at the Glasgow plant.

SPX Corporation, a US Fortune 500 company which bought the business for £750 million last August, has confirmed the job losses several weeks after The Scotsman learned that the plant was to undergo a restructuring.

The North Carolina-based company said it had begun consultations with the trades union and had notified other relevant authorities.

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“The purpose of the proposed restructuring is to drive operating improvements that will help the company continue to deliver world-class technology and engineered solutions to its customers,” it said.

“The restructure is proposed to potentially impact a maximum of 100 positions globally, approximately 90 of which will be in Cathcart.

“During the next 30 days, the company will consult with the trade unions and employee representatives to agree upon the selection process and criteria for the proposed redundancies.”

The 30-day consultation ends on 16 June and The Scotsman understands that 94 Scots jobs will be axed. Thomas Burley, joint chief executive at Cathcart, departed in January, leaving co-chief executive Keith Mitchell in charge.

McColl’s decision to sell Clyde Union to SPX followed months of talks during which he demanded assurances that the new owner of what was previously Weir Pumps would commit to the company he acquired in 2007.

The Scotsman’s sister title Scotland on Sunday revealed in December that SPX had renegotiated the terms of the acquisition, reducing the cash element from £700m to £565m.