HOPES of saving the historic McVitie's factory in Glasgow and 472 jobs have been dashed as the owners have said they plan to proceed with the closure.

Turkey-owned and UK-based pladis said an alternative plan for a new biscuit factory "did not present a viable alternative".

A report claimed that the £50 million cost of building a new biscuit factory would match the money lost to the Scottish economy each year if the axe falls on the current plant.

It is estimated the  knock-on effect of closure would hit a further 400 jobs, with the total cost to the economy estimated at £49m per year.

The 472 staff have already been formally issued with redundancy notices.

Pladis said it had "carefully reviewed" the  alternative proposals put forward as part of the ongoing consultation with employees and their representatives.

READ MORE: McVitie's biscuit factory staff 'handed redundancies' as trade unions react to move

It said: "The alternative proposals did not present a viable alternative to the original proposal. The rationale for the proposed closure, first communicated to employees on 11 May, is to address excess capacity across pladis’ UK sites and protect the long-term sustainability of the business."

Production from Tollcross will move to other pladis sites within the UK and the factory is expected to cease operations in the second half of 2022.

David Murray, pladis UK & Ireland managing director said: “We know this news will be difficult for our colleagues at Tollcross, so it is with regret that we announce our intention to proceed with the proposal to close the site.

"Our priority is to provide employees with the on-going support they need as we continue with the consultation. pladis is home to some of Britain’s best loved brands which have been part of the fabric of our society for nearly two hundred years. In order to protect them for generations to come, we must take steps to address excess capacity in the UK.”

The Herald:

Generations of families have worked at the Glasgow biscuit works which first opened in 1925 as part of the Macfarlane and Lang's Victoria Biscuit Works.

The McVitie’s presence in Scotland goes back to the original Scottish biscuit maker, McVitie & Price Ltd, which was established in 1830 in Edinburgh.

Unions had previously stated that the factory through its parent owners pladis had refused to directly engage with the newly established Action Group set up to prevent the factory's closure.

The group is chaired by the Cabinet Secretary for Finance and Economy, Kate Forbes MSP, and involves the trade unions, Glasgow City Council, Scottish Enterprise, Clyde Gateway and Skills Development Scotland.

Pladis said it had  "engaged regularly" with the Scottish Government, Glasgow City Council, co-chairs of the Action Group Kate Forbes MSP and Councillor Susan Aitken, and Scottish Enterprise throughout the process to date.

Pladis added: "The consultation process will continue, focussing on the collective redundancy arrangements."

A counter-proposal prepared by a group including unions, the Scottish Government and Glasgow City Council, outlined a new factory could be built near the existing site at a cost of just over £50m.

It claimed that ­closing Tollcross would cost pladis, over £30m, factoring in costs such as redundancies. Sale of the Tollcross site for housing could also raise £2m.

Tonight, deputy first minister John Swinney has said he was "perplexed" at the announcement.

He said: “This announcement from Pladis is extremely disappointing. The Scottish Government, alongside Glasgow City Council, GMB and Unite Union, are equally perplexed by this decision as the Pladis CEO gave firm assurances to the First Minister and I in July that they remained committed to working with us to review the proposal submitted by the action group – a serious proposal that aims to support Pladis to retain a factory in Glasgow and secure the jobs at risk.

“Alongside our enterprise agencies we are currently engaging with Pladis to understand why this announcement has been made and what it means for those employed at McVities. We remain absolutely committed to working with them to find an alternative to closure.

“Our overriding priority remains the welfare of the staff and their families and we want to reassure them that we will leave no stone unturned in trying to find a positive outcome. Should Pladis decide to reject the proposals of the action group and proceed with closure, the Scottish Government will put steps in place to support staff who may be facing redundancy.”