Alpha Solway reviews Dumfries staffing levels as PPE demand drops

Alpha Solway said NHS orders had stopped, resulting in a "significant financial impact"

A review of staff numbers is being carried out at two south of Scotland factories after a drop in demand for personal protective equipment (PPE).

It comes just 18 months after Alpha Solway announced a multi-million pound investment in its operations.

The company - which is part of the Globus Group - landed a major contract in 2020 to supply PPE to NHS Scotland.

However, it said demand had now dropped and it was reviewing staffing levels at its two sites in Dumfries.

It is understood a plant which the company operates in Annan is not affected.

Alpha Solway announced plans to invest more than £33m in the region - creating about 300 jobs - last year.

It built a new factory in Dumfries and expanded its operations in Annan.

The move was backed by South of Scotland Enterprise (SOSE) with £4.8m in funding support - its biggest grant to date at that time.

More than 120 staff are employed across the company's two Dumfries sites

Alpha Solway director Steven Binnie said the investment by the company had been made "on the basis of ongoing orders".

"However, in recent months NHS orders have stopped, with significant financial impact," he said.

"As a result, we have been left with no choice but to review operations and staffing levels."

• Read more stories from South Scotland

• Investment will 'drive economy forward'

He confirmed a consultation process had started but stressed there had been "no decisions" on whether it would result in redundancies at the two sites which employ a total of 126 workers.

"We are working urgently to get clarity on the Scottish government's PPE resilience strategy," he added.

"We'd like to thank our colleagues for their hard work over the past two years as we provided millions of masks to the NHS.

"We remain committed to Scottish manufacturing with the increased resilience and sustainability we believe is required if we are to avoid a reoccurrence of the problems of the past."

SOSE chief executive Jane Morrison-Ross said it was aware of the "concerning news" at the sites.

"We have worked with Alpha Solway over the past two years to support the expansion of the business in the south of Scotland, including the development of its new Dumfries site," she said.

"We will do all we can to support any employees affected and have been in discussions with the Scottish government and Alpha Solway's senior management over the past week."