By Chris Hardy

THE MONTROSE economy is bracing itself for the prospect of losing more than 130 jobs in the town in the coming months.

Wednesday’s announcement that VetcoGray is likely to shed 78 jobs, allied to GlaxoSmithKline’s earlier confirmation that it is to reduce its workforce by 55, has local businesses anticipating a downturn.

In a month that saw unemployment rates in Scotland continue to fall, bucking the trend in the rest of the UK, the Montrose job losses contribute to a mixed message about the health of the local economy.

“Whatever the government says, our trade indicates we are already in recession and we are bound to feel the draught from these job losses,” said one High Street business.

However, Angus Council economic development department has stated that demand for sites on the Forties Road industrial estate is strong, oil supply firm Merpro is planning a major office extension, Montrose Port Authority has reported an upturn in its financial position and VetcoGray says shrinkage of its workforce is allied to a £2.75 million investment at its Charleton Road site that will secure the future for the rest of its workers.

Angus MSP Andrew Welsh stressed that VetcoGray remained a major employer in Montrose and the company’s plans to invest a further £2.75 million in its plant in the town had to be recognised as something positive.

He said, “This is another shock after the announcement of the GSK job losses. But I have been assured by VetcoGray that help will be available to everyone in their employment affected and I certainly would encourage all those involved and the local authority to provide whatever assistance and advice is needed. I am prepared to do anything I can to help.”

Councillor David May, convener of Angus Council’s infrastructure services committee, which includes economic development, said he was hoping to meet VetcoGray early next week.

“Along with our director of economic development, I want to find out what measures VetcoGray will take to relocate employees, what they will do to help find alternative employment, what impact will it have on local sub-contractors and what role we can play to assist.”

Montrose Chamber of Commerce secretary and treasurer Hamish Watt said he had read of the possible job losses with alarm. “It is too early to say what the exact impact of the VetcoGray decision will be, but I would expect there to be a knock- on effect amongst smaller suppliers in the sector,” he said.

Last night VetcoGray said that under the proposal for their Montrose site, the transition would occur in phases beginning in September and concluding February 2009.

“This phased approach will help ensure a smooth transition and minimal, to no disruptions, in production,” said a spokeswoman.

The company said that during the employee consultation process every option to minimise the impact upon its employees would be considered, including early retirement, alternative roles and re-training. Affected employees would also have the opportunity to apply for open positions on the company’s on-line database.

There are currently 190 employees at Charleton Road and it is anticipated that there will be no more than 78 job losses there.

There are almost 80 employees at Brent Avenue and there will continue to be so.

GlaxoSmithKline at Montrose is to lose its site director Alan Catterall. In a move that has surprised the Montrose workforce, Dr Catterall is to take up a similar position at GSK’s Irvine site from October.

He will be replaced by David Tudor who has been working on global improvement projects within the group.