Industrial Ayrshire: Irvine - Drugs, Paper, Glass, Oil, Aerosols, and Wind Power!

Stretching a third of a mile, the giant UPM paper mill along the A78

Ayrshire has always punched above its weight as an industrial powerhouse, and even continues to do so today, with important home-grown businesses as well as foreign-financed ventures providing employment to locals and products to the World. 

Here is a look at some of the main industrial companies in the immediate Irvine area with a quick guesstimate of how they will be impacted or not by Brexit.

(1) GlaxoSmithKline
Biggest in terms of employment is British drugs multinational GSK, whose Irvine factory employs around 350 people. In 2016 the plant received a grant of £1.5 million from the Scottish government when it announced an additional 55 jobs, but then one year later had to return the money after it announced a similar number of job cuts. The plant, which is located on the Riverside Industrial Estate, produces penicillin. The plant was opened in the 1970s by Beechams, which later merged with other companies to form GlaxoSmithKline. The top boss since 2017 is Emma Natasha Walmsley.

Relatively low level of Brexit disruption to be expected, as much of the company's production of penicillin is aimed at the developing world.

(2) UPM Kymmene
Biggest in terms of plant size is Finnish paper maker UPM, which runs the enormous Caledonian Paper Mill, among its many other plants and assets around the World. Built in 1989, the mill on the South side of town, along the main A78 road to Troon and Ayr, employs around 290 people and can produce up to 280,000 tonnes of lightweight coated magazine printing paper. The top boss is president and CEO Jussi Pesonen (born November 24, 1960 in Helsinki). With magazine sales continuing to fall, there is a possibility that this plant may close down sometime in the future, especially as the company's focus in increasingly on Asia. 

Medium risk of Brexit disruption, but long-term non-Brexit-related trends are the real problem.

(3) Ardagh Glass
Despite its "Celtic"-sounding name, Ardagh Glass is actually a multi-billion-pound, Luxembourg-based producer of glass and metal products with around 90 facilities in 22 countries, and well over 7 billion Euros in revenue. The company’s large Irvine facility, just across the road from the Scottish Maritime Museum in the Harbourside district employs 222 people and operates around the clock, 365 days a year, producing 310 million spirit bottles from 20cl to 2 litres in clear and green glass. The bottles are used by world-renowned brands such as Smirnoff, Gordon’s, Glenfiddich, and Jameson. In recent years, the company claims it has invested £16 million in the Irvine facility.

Relatively Brexit proof, unless the drinks companies it supplies relocate.

(4) Howco
Howco has a large plant, employing an estimated 130 people, near the village of Drybridge on the Southern outskirts of Irvine. The plant makes parts for the oil drilling industry. Although owned by Japanese global giant Sumitomo, the company was originally founded by a couple of Scots, Malcolm Howat and John Ferguson. In 2004 the company took over Irvine-based Critical Components, which was renamed Howco Oilfield Services. In 2005 the Japanese acquired the operation. Sumitomo invested £4.5 million in the plant in 2015, but fired 19 staff the next month due to a fall in oil prices.

Relatively Brexit proof, as the customer base is located in the North Sea oilfields.

(5) Merck
German drugs giant Merck employs around 170 people at its Irvine plant, which is located just behind Sainsbury's supermarket. This plant produces dry powder and liquid media for a wide range of drugs, including those for rheumatoid arthritis, cancer, flu, diabetes, and dementia. In 2015, the company spent £20 million to set up a dry powder facility, then a further £1.3 million to expand the facility, which now ships 150 tonnes of dry powder and 2.7 million litres of liquid media a year.

High risk of Brexit disruption due to the Merck's integrated EU production network.

Drug maker Merck announces more investment 
in the hard-working folk of Irvine.

(6) Barony Universal
In 2007, electronics firm Simclar closed both its Irvine factory and its Kilwinning operation, with a total of 420 jobs lost. In 2010, however, Barony Universal, took over the factory to produce aerosols, creating around 140 jobs. The company, originally Scottish, was acquired by Russian Alexei Sagal's Arnest Group in 2007 with an 85% holding. The company also produces branded cosmetics, toiletries and other household products. 

Medium risk of Brexit disruption as the Russian company acquired the company in order to spearhead its expansion into Europe.

(7) Windhoist
Windhoist are a major erector of wind turbines, with over 6000 erected since 2005. The 6 hectare Irvine site employs an estimated 100 staff at the company's office, workshop, storage space, and training centre. Around 300 technicians are employed worldwide, with the company's total sales being £47.4m in 2017. Windhoist was recently sold to European private equity firm Star Capital by its founder Hugh McNally. 

Medium risk of Brexit disruption.

(8) Plastic Mouldings
Employing around 80 people at their plant in Irvine's Industrial Estate near the Beach Park, the company manufactures flexible and semi-rigid PVC, natural rubber, cast and slush mouldings, complex shaped mouldings, and large plastic sheets.

Low to medium risk of Brexit disruption as the company seems to have a mainly UK customer base (unconfirmed).

(9) NPI Solutions
Formed in 2001 and employing around 35 people, the company is located in the Irvine Industrial Estate near the Beach Park. It produces components, assemblies, and manufacturing fixtures -- including the nuts, bolts, shells, and casings -- for all manner of products in the defence, medical and aerospace industries. According to this 2013 article, the company's customers include Raytheon (defence), Chemring (defence), BAe Systems (defence), Teknek (capital equipment), New Brunswick Scientific (medical), Invotec (printed circuit boards and aerospace), Linn Products (commercial products). 

Minor risk of Brexit disruption due to its ties to the defence industry.

(10) Kennedy Smith Press
Founded in 1997, this carton manufacturer employs around 33 staff and is located in the Riverside Business Park, where they moved in 2005. They create packaging for various industries, including pharmaceuticals and food. Customers include Tesco, Asda, and Deep Heat.

Risk of Brexit disruption is low to medium.