Huge blow for 600 new jobs as manufacturing firm AXES deal in Scottish town

A MANUFACTURING firm has abandoned plans to bring almost 600 jobs to a Scots town.

The decision by satellite manufacturing giant Mangata Networks was made due to “challenging economic conditions”.

The company had previously announced plans for a space satellite engineering and manufacturing facility in Prestwick.

Up to 575 new jobs were to be created as part of the state-of-the-art operations hub.

The project was set to be supported by almost £84million of funding from Scottish Enterprise, the Scottish Government, the UK Government and South Ayrshire Council.

But the firm has pulled the plug on the plans amid rising costs and supply chain availability.

A spokesperson for Mangata Networks said: “Due to challenging global economic conditions, significant increases in material costs and issues with supply chain availability, Mangata Networks, in consultation with Scottish Enterprise, has made the decision to end the new build project for its facility in Scotland.

“Our focus will now shift towards identifying and adapting existing structures within the region to meet Mangata’s manufacturing needs.

“Despite this change, Mangata remains committed to maintaining its product Research and Development operations in Scotland. We are also actively considering Scotland as a potential base for our satellite and network operations.”

A spokesperson for Scottish Enterprise added: “It is disappointing that Mangata Networks has decided to withdraw from its planned manufacturing and operations project in Scotland.

“The Prestwick International Aerospace Park site remains an attractive and strategically placed location. We will continue to seek out ambitious companies looking to scale by promoting Scotland’s excellent capabilities in Space and growing reputation for innovation.”

South Ayrshire Council added: “South Ayrshire Council is fully committed to the Space and Aerospace programme within the wider Ayrshire Growth Deal, and significant work is being carried out to define the scope and requirements of the projects to meet current and future needs of the aerospace sector.”

The Scottish Government said the money allocated to the project will be used to ensure the growth of the aerospace sector.

A spokesperson said: “We are aware that Mangata Networks has withdrawn from its planned project in Ayrshire due to a number of global economic and inflationary pressures.

“This decision should not detract from Scotland’s ongoing success in attracting inward investment as part of a clear and strategic approach to capitalising on our key strengths and potential. We welcome the company’s ongoing commitment to existing operations in the country – and commitment to exploring new opportunities.

“We will continue to work alongside our economic agencies and other partners in a “Team Scotland” approach to attracting inward investment and developing the many economic opportunities to be unlocked – both in the Ayrshire region and across the country. We will also work with Ayrshire Growth Deal partners to ensure that Deal money allocated to the project continues to be used to enable the region’s aerospace sector to develop and grow.”