New factories are opening in Scotland as established manufacturers close or transfer production. New investment spans from Japanese cable-making to Scottish food businesses and university spinouts, with public money backing some of the largest projects.
A £350 million factory has opened in the Highlands to make subsea electricity cables, just as a manufacturer of thermostats and heating components prepares to move production from Scotland to central Europe.
Japan’s Sumitomo Electric opened its plant at Nigg on 19 October, with a forecast of more than 200 local jobs. At Newhouse in North Lanarkshire, Resideo is preparing to transfer manufacturing to its factories in Brno in the Czech Republic and Nagykanizsa in Hungary. Unite said on 20 October that approximately 116 jobs were at risk.
A proposal at the neighbouring Honeywell operation would transfer work primarily to Poole in England, putting another 91 jobs at risk, according to the union. Unite has called on the Scottish and UK governments to explore ways of retaining both workforces.
The latest full-year figures show Scotland attracted fewer foreign investment projects in 2025. EY recorded 108 projects, down from 135 in 2024, a fall of 20 per cent. Scotland remained the leading UK destination outside London, but manufacturing projects fell to 30 from 39. Across all sectors, 51 of the projects were new and 57 were expansions of existing operations.
The decisions behind the departures
ExxonMobil’s Fife Ethylene Plant stopped production in January 2026 and is being decommissioned. Scottish Government minutes record that no viable offer emerged when the company sought a buyer, leading its board to close the plant.
At a meeting on 17 November 2025, ExxonMobil reported about 179 direct employees and 250 contractors. In an earlier meeting that month, it said approximately 500 businesses supplied the plant, receiving around £15 million a year between them.
Syngenta’s Grangemouth site faces a decision that has yet to be finalised. On 1 October, the company proposed ending all operations there, potentially affecting 377 employees. It said alternatives would be considered during consultation. The company cited international competition, energy conditions and operating costs that remained substantially higher than at alternative production locations. Its announcement did not name a factory or country that would take over the work.
Greggs’ proposals come alongside growth in its wider business. Total sales rose 7.7 per cent in the 13 weeks to 26 September 2026 compared with the same period a year earlier. Its manufacturing review nevertheless proposed closing Pettigrews in Kelso and reducing the range of products made at Clydesmill, where manufacturing would continue.
“Greggs is a strong and growing business,” chief executive Roisin Currie said in the company’s statement. The proposed changes would concentrate production at fewer sites and transfer some products to specialist suppliers. Greggs expects the wider programme to deliver around £20 million in annual pre-tax operating cash savings once completed. Final decisions remain subject to consultation.
Alexander Dennis has also reduced the work carried out in Scotland while retaining part of its manufacturing operation. In an October statement, the bus maker confirmed that chassis production continued at Larbert after bus-body production ended at its Scottish sites. It said it retained the ability to resume body manufacturing if demand justified it.
The public stake in new production
Sumitomo established its Scottish subsidiary in 2023 and began construction at Nigg in May 2024. The subsidiary is wholly owned by the Japanese group.
The plant will make high-voltage subsea cables for electricity networks, including offshore wind connections. National Grid said at the opening that it had awarded Sumitomo the contract to supply cable for its Sea Link project. First Minister John Swinney said the Scottish Government had invested £24.5 million in construction.
Near Glasgow, another factory has reached the operational stage. Pulpex, headquartered in Cambridge, opened its first commercial fibre-bottle plant on 8 October. The company announced initial capacity for up to 40 million bottles a year and approximately 39 skilled manufacturing jobs associated with the opening.
The National Wealth Fund committed £43.5 million and the Scottish National Investment Bank £10 million to Pulpex’s £62 million financing round announced in February 2025. Together, the two public investors accounted for most of the funding commitments. Their equity investments give the public institutions a financial stake in the business.
Public support is also part of the history of the Grangemouth operation now under threat. Syngenta said on 2 October that it had received around half its grant allocation, approximately £1 million, supporting nearly £15 million of company investment. It said it intended to repay the grant received if operations ceased following consultation.
Businesses based outside Scotland account for a substantial share of its private-sector employment. In March 2025, they represented 3.6 per cent of registered private businesses but accounted for 35.9 per cent of employment in that business population, according to Scottish Government figures. Overseas-owned companies accounted for 21 per cent of employment; UK-owned businesses based elsewhere in the UK accounted for another 14.9 per cent.
The businesses being built in Scotland
Existing Scottish businesses are adding production capacity of their own. Victor Pizza, a Glasgow family business founded in the 1970s, opened a factory in Coatbridge in May 2026. Scottish Enterprise said the move more than doubled capacity and supported the creation of 17 jobs. In Hawick, Johnstons of Elgin completed a £1.6 million expansion in August 2025, increasing production capacity by a reported 25 per cent and providing room for 50 additional roles.
Newer manufacturers are starting with smaller workforces and longer recruitment plans. VASO Global opened its first factory in Dumfries on 25 September 2026, making construction panels from recycled glass. The Scottish-founded company said 15 local jobs had already been filled and forecast up to 70 within five years.
In Forres, the emergence of a new food manufacturer follows the town’s exposure to an earlier closure plan. Conservative MSP Tim Eagle told the Scottish Parliament in March 2025 that the planned closure of New World Foods would cost nearly 40 rural jobs. He cited logistical costs as the explanation given by the owner, Valeo Foods.
All-Steak, a separate company incorporated in April 2025, subsequently received support from Highlands and Islands Enterprise to establish a food-manufacturing facility in Forres producing protein snacks. Companies House records identify three people resident in Scotland as its controlling shareholders. HIE’s August 2026 account of the investment gave no workforce figure for the business.
Another route into manufacturing runs through Scotland’s universities. Quantcore emerged from the University of Glasgow in August 2025, developing and making quantum hardware at the university’s James Watt Nanofabrication Centre. Its products include superconducting processors, sensors and resonators.
The company announced £2.5 million in seed investment in February 2026, with investors including Scottish Enterprise and private investment firms. At the time of the announcement it employed four people, with a plan to expand to 12 over the following 18 months.
