Scotland’s polymer processing sector has suffered a body blow with news that US business machine group NCR is to cease ATM manufacture at its Dundee plant and switch it to a factory it has built in Hungary.
The move means that 650 out of the 750 employed in manufacture will lose their jobs; a further 650 people are employed by the company in engineering, development and marketing of ATM machines.
The company blamed the high cost of manufacture at the Dundee site, where it has had an operation for 60 years, for the decision. Initially, it had said that the Hungarian plant, opened at the end of 2005, would be complementary to the Scottish facility.
Moulding and assembly of the polymer components of the ATM is a showcase application for engineering polymers and an important source of work for both Rosti and Carclo plants in Scotland. Some supply from Scotland to the new Hungarian plant is expected to mitigate the impact.
"The realignment should enable meaningful cost reduction as we optimise our manufacturing operations by improving absorption across geographies and strategically outsourcing to contract manufacturers where the company can reap economies of scale,” said NCR CEOand president Bill Nuti.