Tue, 18 Jan 2011 | ADMINISTRATION
A Dumfriesshire-based chemicals firm has entered administration, leaving the employment of its 34 workers hanging in the balance.
Phoenix Chemicals opened its factory at Newbie near Annan last year with a £400,000 grant from the Scottish government. The site had become available after Shasun Pharma Solutions, a pharmaceutical business, pulled out with the loss of 86 jobs in March 2009, having been at the site for almost 30 years.
Dumfries Labour MSP Elaine Murray and Dumfriesshire Conservative MP David Mundell have requested that immediate action be taken to ensure the security of the 34 chemical factory workers' jobs.
It is believed Phoenix had been having financial difficulties with a particular contract involving its main client in India.
Elaine Murray said, "The best outcome would be to find a buyer for the site, but it must be faced that this is not the best of times for companies to raise funds, expand or engage in new ventures."
The business is continuing to trade while a buyer is sought. When the site was reopened in October 2009, Phoenix Chemicals had plans to create up to 60 jobs over the course of three years with an investment of £4 million.
At the time Enterprise Minister Jim Mather expressed his support for the move, "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."
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