Grant boost troubled Stirling firm Superglass
- 17 November 2011
- From the section Scotland business
Nearly 190 jobs have been safeguarded at troubled insulation manufacturer Superglass after the firm secured £2m in Regional Selective Assistance (RSA).
The grant came after the Stirling-based firm recently announced plans to raise about £9.5m from investors as part of a financial restructuring.
Superglass said the money would help it implement a capital investment programme.
Shares in the company initially jumped almost 31%, after recent hefty losses.
In September, Superglass warned it would not be able to service its debt to Clydesdale Bank without a debt-for-equity swap it had agreed with the lender.
RSA is administered by Scottish Enterprise, which is providing a range of support for the company, including assistance with improving efficiencies and reducing operating costs.
Superglass chief executive Alex McLeod said: "I am delighted that we have been successful in obtaining RSA funding. This award reaffirms the Scottish government and Scottish Enterprise's commitment to the Scottish manufacturing sector.
"It will - when combined with the support we have received from investors and Clydesdale Bank - enable Superglass to implement a capital investment programme at our Stirling manufacturing plant which will improve our operational efficiency and competitive position, while creating and safeguarding jobs."
Enterprise Minister Fergus Ewing: "I am delighted that this funding will further secure the jobs of 187 employees, as well as ensure the continued future success of a major company in the Forth Valley area."
Superglass began manufacturing at its Stirling site in 1987 and is a major supplier of glass wool insulation products for the construction industry.
It has been listed on the London Stock Exchange since 2007.