Dozens of jobs set to be axed as Scottish firm goes bust

NEARLY 80 jobs are set to be lost in with the “devastating” mothballing of a fish processing factory.

Western Isles MSP Alasdair Allan expressed his “serious concerns” after today’s announcement by Bakkafrost’s fish processing plant in Marybank on the Isle of Lewis.

The Faroese-owned plant is one of the largest single private employers in the islands and is believed to employ 77 people.

Bakkafrost Scotland is planning the “temporary but extended closure” of its processing facility at Marybank.

Its harvest station at Arnish, four miles to the south of the processing plant, will also close under the plan.

The move is partly a consequence of Bakkafrost Scotland’s strategic decision to harvest most of its fish in the first half of the year to avoid biological problems caused by environmental factors in late summer.

Dr Allan spoke to directors of the company this afternoon by phone and also took part in a meeting organised by Western Isles Council.

Bakkafrost have cited a reduction in production volumes for the decision to cease production at the plant until at least 2027.

The company had been developing its Applecross site in Wester Ross, but due to poor numbers of stocks, Bakkafrost do not believe there are enough fish to keep the Marybank site open.

However, in an emergency meeting today, Bakkafrost confirmed there would be no job losses at the company’s fish farm sites across the Western Isles despite the major impact on processing.

Following the announcement, the SNP’s Dr Allan said: “Obviously this news is devastating for the Isle of Lewis, and it will be a deeply worrying time for the employees of the plant and their families.

“This is one of the island’s largest employers and these job losses will have other knock-on impacts on smaller local business. I fear for the impact this decision could have on the wider economy and community in the islands, and this was my message when I met the company by phone this afternoon.

“I met earlier in the day with both Comhairle nan Eilean Siar and Bakkafrost and urged the company to reconsider this decision. I am also writing to the Deputy First Minister and Highland and Islands Enterprise to look into assisting Bakkafrost to potentially recommencing operations at Arnish in future years.

“Importantly, I intend to meet with representatives of the workforce at their earliest convenience to see what more can be done to support workers and their families during this difficult time.”

The isles new Labour MP Torcuil Crichton added: “This is grave blow for the Marybank employees, some of whom are long-serving and skilled staff, and the island economy.”

“I have spoken to the company this week and realistically does not look likely that the mothballed plant will be re-opened.

“Bakkafrost have given an assurance that the 80 plus fishfarm site jobs in the Western Isles are secure, but I urge HIE and the Scottish Government and Comhairle nan Eilean Siar to have a co-ordinate a response to find alternative employment for the workers and to help maintain the fishfarm sector in the islands.”

The fish farming company said it had been “forced to consider extremely difficult scenarios” in order to future proof the business.

“I can confirm we are considering a temporary, but extended, closure of our facilities at Marybank and Arnish in Stornoway, potentially affecting about 80 jobs,” the Faroese-owned company said in a statement.

“The business has harvested the majority of our stock in the first part of the year and there will be minimal harvesting activity over the next 18 months. However, due to stock timing and locations this places our Northern operations in a challenging position.

“Our board has been forced to consider extremely difficult scenarios in order to future proof the business and secure remaining jobs across Scotland. One of the scenarios proposed is that we close the Arnish Harvest Station and the Marybank Processing Facility, for an extended period.

“We intend to start a period of collective consultation with those potentially affected and hope to complete this over the coming weeks.”

Bakkafrost Scotland is a subsidiary of Faroese fish farmer Bakkafrost Group, which is investing millions of pounds in facilities to grow 500g post-smolts at Applecross. The facility – and a second post-smolt plant planned at the Hunterston Port and Resource Centre (PARC) on the Ayrshire coast – are expected to help smooth out the peaks and troughs of the company’s production.

In November last year, parent company Bakkafrost issued redundancy notices to 140 processing staff working in value-added product-related areas in the Faroes.

The company said that as a result of changes in the Faroese revenue tax, it had adjusted the strategy for contracted value-added products to reduce contract exposure for 2024.