Weir pumps sold
Monday, March 5th, 2007. Filed under Cathcart.After months of uncertainty facing the 650 employees of Weir Pumps, the Cathcart company has been sold to Sulzer AG, for £48 million.
Swiss based Sulzer owns a pumps division and manufacturing site in Leeds and is in the final stages of securing the deal to take over Weir’s Cathcart factory.
Weir produces custom built pumps for upstream oil and power generation markets.
If the deal is accepted, then 596 jobs will be transferred to Sulzer, the rest will remain with Weir.
However, if the work is reduced to just design and spares then there are likely to be major job losses in Glasgow because most of the workforce are employed in the manufacturing side.
Kenny Jordan, regional officer for the trade union, Amicus, said, ‘Staff are shocked and feel betrayed because these talks have been ongoing for some time but the staff have not been told anything until this bolt from the blue. Morale has been low among staff and they were hoping that they would be moved to a new site in Cambuslang which would have been the ideal solution. Instead we have been sold short.
‘Management they confirmed that it is 98% certain that Sulzer will be taking over. This will definitely mean downsizing to design and spares. Staff morale is now at an all time low – even with full order books until 2009.’
Amicus is fighting to negotiate the best deal from the current situation.
Mark Selway, Chief Executive of Weir Group PLC commented, ‘The business operates in highly competitive markets from manufacturers who are manufacturing in low cost countries. After evaluating all the options it is looking more likely that Sulzer will be better placed to take over. This will be the best option for the business and shareholders.’
An angry Charlie Gordon, Cathcart MSP, stated that he felt sorry for the families who will be affected by the imminent job losses. He slammed Weir Pumps for the underhand way in which they reached the deal, without telling staff, unions or himself. He said that only 10 days before the shock news broke, he had been discussing the possibility of the company relocating. In the face of strong rumours, requests for information by staff and unions had been met with a wall of silence. He added, ‘If they had engaged properly with us, other more palatable options may have emerged. For example, the expression of interest from Jim McColl of Clyde Blowers in acquiring Weir Pumps.’
Mr Gordon contrasted Weir Group Executive’s conduct unfavourably with near neighbours in Cathcart, Scottish Power. He said, ‘Scottish Power are in advanced merger talks with Spanish-based Energy Company, Iberdrola. At every stage both companies’ top executives have talked to staff, unions and to me, acknowledging as legitimate, our concerns over job retention. Being sold out by a Scottish boss is no better than being sacked by a foreign one.’
The 17.5 acre site will have to be vacated by 2009, because it has been sold to Cala Homes for £25 million to build 493 luxury homes and flats.