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Jobs for Dumfries and Galloway
29/10/2009
A chemicals plant, which closed earlier this year with the loss of 86 jobs, is to be re-opened with Scottish Government support.
Phoenix Chemicals Ltd will breathe fresh life into the former Shasun facility in Annan, creating 58 high-value jobs over the next three years in a £4 million capital investment.
Visiting the facility today, Enterprise Minister Jim Mather announced that the company had secured a £400,000 Regional Selective Assistance Grant - cash used to help create or safeguard Scottish jobs.
Mr Mather said:
"The closure of the Shasun facility in March was a bitter blow to the people of Annan. In such challenging circumstances for local economies, the Scottish Government is determined to do all we can to support employment.
"I warmly welcome Phoenix Chemicals' acquisition of the Shasun facility and the company's commitment to the area, which is a real boost for Dumfries and Galloway economy. It shows that schemes such as Regional Selective Assistance can have a positive impact on jobs, particularly in a downturn.
"And it shows that Government is right to act when job losses are announced. We may not be successful in all circumstances - but in cases like this the public sector can step in and make a real difference for local economies and communities.
"It comes as the Scottish Government today updates its Economic Recovery Plan, which sets out the measures we are taking to deal with the challenges facing our economy.
"As today's news from Annan shows, new investment and job creation projects are still being taken forward in Scotland, giving us reason to be optimistic about Scotland's recovery prospects."
Colin Leece, CEO of Phoenix Chemicals Ltd, said:
"Phoenix Chemicals Ltd is pleased to have had the opportunity to acquire a pharmaceutical manufacturing facility such as Annan. We already have a small team hard at work on the challenges of bringing this facility back on line as an operational plant.
"It has been a very interesting and rewarding experience working with Scottish Enterprise, Scottish Development International, Scottish Government and Shasun to complete this transaction and we look forward to completing our initial recruitment, investment and starting production by end of quarter one 2010."
Phoenix Chemicals Ltd is based in the Wirral, England, where it currently employs 74 people in manufacturing pharmaceuticals and fine chemicals. The company has acquired the Shasun facility in Annan, which closed in March, 2009.
Phoenix utilises novel continuous processing technology to manufacture a range of products for the world's leading pharmaceutical companies. This technology creates a competitive edge against low cost competitors and will be integrated into the Annan site to manufacture a range of pharmaceutical products, including treatments for HIV and lowering blood cholesterol.
Regional Selective Assistance is Scotland's main national scheme of financial assistance to industry. It is aimed at encouraging investment and job creation in the Assisted Areas (AAs) of Scotland. Payments of RSA are made in instalments, typically over several years, provided that job and project expenditure targets are met. The 400,000 pounds awarded to Phoenix represents the maximum grant potentially available if the project is satisfactorily completed. Responsibility for the appraisal of Regional Selective Assistance transferred to Scottish Enterprise on October 1, 2009.