SGL Carbon slashes Muir of Ord workforce as Ross-shire plant hit by fall in demand
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A MAJOR private sector employer in Ross-shire is understood to have made a substantial cut to its workforce as a result of a slump in demand.
SGL Carbon specialises in carbon-based materials and offer customers tailor-made solutions across a variety of field ranging from automative to wind turbines. The German-based company, one of the world's leading manufacturers of products from carbon, has a base in Muir of Ord.
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.
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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% 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.”
The company, which is affected by cyclical changes of demand in the industries it supplies, has been asked to quantify expected job losses.
