Halifax redeployment an option as SGL Carbon in Muir of Ord cuts workforce by a third
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A MAJOR Ross-shire employer has slashed by a third its local workforce as a result of a slump in demand.
SGL Carbon’s recent sales have been dominated by the renewable energy sector with carbon material produced at the site being used in wind turbines, battery storage devices and electric vehicles.
Less than a year ago the Muir of Ord plant was being touted as a potential beneficiary of the Cromarty Firth freeport amidst talk of a multimillion-pound spin-off from a renewable energy revolution.
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A downturn in wind industry demand has had a significant impact on the Muir of Ord site with a number of its production lines due to be shut down and a third of the workforce laid off.
The company was reluctant to put a figure on the number of lay-offs but in March last year it was understood to employ 250 people.
A spokesperson for SGL Carbon said: “SGL Carbon produces carbon fibers for the wind industry at the Muir of Ord site. As reported in our quarterly reports, sales and earnings in the Business Unit Carbon Fibers (CF) fell by 33.2 per cent over the first nine months of 2023 due to the continuing decline in demand from the wind industry.
“High stock inventories have built up and due to ongoing low demand in the wind industry, the production capacities in Muir of Ord remain largely unutilised.
“In order to safeguard jobs by addressing financial losses, several production lines at SGL’s Muir of Ord site will have to be shut down to reduce costs. We expect demand to remain at a low level during 2024 and new orders are unlikely to compensate the missing demand.
“Unfortunately, the shutdown of the production lines is also associated with a reduction in the workforce required, resulting in consultation for restructuring and downsizing of the team.
“Muir of Ord remains an important site for SGL Carbon’s global business. We will work closely with those colleagues impacted by this decision to help them find new roles and thank them for their service.”
A spokeswoman wasn’t able to quantify actual job losses as consultation is ongoing. She said: “Where possible, we are trying to make an alternative offer to the employees at our second location in the UK, in Halifax, and are providing support in placing them with other companies.”
The site was visited last March by Scottish Government Trade Minister Ivan McKee. He said then: “SGL has joined the renewable energy revolution by producing materials used in electric vehicles and offshore wind turbines, exporting around the world and transforming the local economy. SGL is a prime example of the positive impact inward investors can have on Scotland’s regions.”
Then managing director Steve Easton said at the time: “The majority of our products are being used within the renewables sector, contributing to a greener future and we look forward to playing our role in growth from the freeport status.”
