Selkirk-based RP Adam (Arpal Group) is set to close its cleaning products factory, putting close to 50 people out of work.
According to American firm Ecolab, who took over the Arpal Group in 2017, the decision to shut the almost 130-year-old factory follows a review of its manufacturing operation in the UK.
In a statement Ecolab said: “This decision was made after extensive review of our manufacturing in the UK to identify ways to further optimise the efficiency of our operations.
“We determined that our other UK manufacturing plants are better suited to meet the long-term needs of our business in this market.
“This decision applies only to the Selkirk manufacturing site and offices.
“Secondly, it is in no way due to the quality of the team or the quality of the work at this location.
“The company’s intention is to maintain the Arpal brand, to retain existing customers and to continue a market approach that is distinct to the RP Adam company.
“Our immediate focus is to support the employees affected by this decision.
“We will explore possible ways to reduce or mitigate the effects of any redundancies, such as redeployment, filling open positions at other Ecolab sites or assistance with job placement.”
MP John Lamont, who represents Berwickshire, Roxburgh and Selkirk, said: “RP Adam has a long history in Selkirk and the loss of this business will come as a shock to many.
“Ecolab have assured me their focus is on supporting their employees. Unfortunately, redistribution of staff is not really an option so it is clear we are looking at a sizeable number of redundancies.”
Employees are currently being consulted about the plans and could be offered redeployment packages.