Call to First Minister to save Greenock factory from axe

Around 365 shellshocked staff at the Larkfield electronics factory were left reeling yesterday when management told them the plant was being ‘phased out’ over the next three years.

Bosses want to move operations overseas, in what is a devastating blow to the Inverclyde economy.

Greenock & Inverclyde MSP Duncan McNeil plans to ask Ms Sturgeon at today’s First Minister’s Questions to work directly with Texas Instruments and find a buyer to save the jobs.

Mr McNeil said: “The Scottish Government, the council and the elected local politicians all have to get together to act fast to find ways of saving jobs and reverse the decision if we can.

“We have to look at somebody else taking over the plant.

“These are highly skilled, quality jobs we are talking about and it is worrying that it has come completely out of the blue.

“This is without doubt a major setback and comes as a big shock - Texas Instruments had been performing well and I think questions have to be asked about why we are losing jobs to countries like Germany and Japan.

“It is disappointing if we were not given the chance to save the jobs, Scottish Enterprise has close working relations with Texas.”

The company plans to move production from Greenock to ‘more cost-effective’ sites in Germany, Japan and the United States.

A statement said: “This is a decision taken with our global operations in mind and is not a reflection of the performance, quality or commitment of our Greenock employees.

“Our employees have done everything they can to keep the site cost-competitive, and we strongly considered ways to improve the site’s efficiency, such as upgrading or expanding the facility.

“However, even with a considerable investment, TI’s factory in Greenock would be far less efficient than our other larger, more efficient fabs, which have open capacity available to absorb what’s produced in Greenock.”

Bosses insist no jobs will go until the end of 2017 and in the meantime they say they will try to sell the plant as an ‘on-going manufacturing operation’.

They said: “We have contracted with Atreg, a company that specialises in selling manufacturing properties, to help us with this.

“We are just at the proposal stage, and ending manufacturing operations is a lengthy process.

“If the plant closes, we expect it to take our Greenock employees as long as three years to transfer production to our other sites in Freising, Germany, Aizu, Japan, and S. Portland Maine.

“We do not anticipate any job losses associated with the factory to happen any sooner than late 2017.”

Inverclyde Council described the news as a ‘stunning blow to the Scottish economy’, as leader Stephen McCabe moved immediately to launch a taskforce in a bid to try and help the staff.

Local authority leader Mr McCabe said: “I am announcing the setting up of a dedicated taskforce and will be extending an invitation to the Scottish Government, their national agencies, local councillors, our regional and constituency MSPs and our MP.

“It is time to once again stand shoulder to shoulder, as we did over the highly successful Ferguson’s taskforce, and secure a future for this skilled workforce.

“We must also work together to ensure that national resource makes its way to Greenock to achieve that endeavour.” 

The Scottish Government has opened talks with TI in a bid to keep jobs and rescue the site from the scrapheap.

MSP Stuart McMillan said: “I have spoken to Deputy First Minister John Swinney and he informed me that the Scottish Government have been already been in dialogue with Texas Instruments and are offering any assistance they can to help secure a future for the factory and its employees.

“The top priority now must be to find a new owner for the plant to allow the workforce and manufacturing to continue.”

Many staff leaving the site yesterday did not make any comment but the grim announcement about one of the area’s largest employers sent shockwaves around the area.

One man whose relatives formerly worked there, Peter Eardley, said he was devastated to hear the news.

He told the Tele: “My wife Veronica and son, Peter, used to work there. It’s terrible that it’s going to close.”

Site manager Gerry McCarthy says the decision to shut the plant was not taken lightly.

He added: “While the rationale for moving production out of our Greenock fab makes good business sense, we understand the impact it could have on our employees and the community.

“We recognise this is difficult news, and our focus right now is on our employees and to ensure they have all of the information they need as we move forward.”

Workers' hopes dashed

AROUND 400 people work at the plant, which was bought from National Semiconductor as part of a worldwide £4 billion deal in 2011.

Asked at the time if Nat Semi employees could now feel more secure in their jobs, Paul Fego, vice-president of worldwide manufacturing for TI, said: “As secure as anyone can feel these days.”

He added: “We don’t go out and buy just for the sake of shutting down— our goal is to grow the company and the revenue.”

Greenock managing director Gerry McCarthy had also been confident the takeover was good news for Greenock.

He described it in 2011 as being ‘essential to ensure the future of the Greenock operation’, which started production in 1970 and at one time employed more than 2,000 people.

The Greenock facility designs and manufactures advanced analogue semiconductor chips for use in computers, mobile phones and other devices and TI chiefs promised more products and development when they took charge.

Mr McCarthy said at the takeover: “This development is very positive for our Greenock operation.

“National was not growing. TI will grow because they think big. They have the products and the sales.

“Texas Instruments will benefit from National’s three manufacturing sites, which include Greenock, and there are no plans to reduce or change any of these operations.”