Ice plant faces closure

The loss-making ice plant in Grimsay faces closure due to its ongoing weak financial operation.

The council-owned facility at Kallin harbour was built to serve the fishing industry.

However, sales of ice are dramatically less than the levels projected in the original business plans.

Income from sales do not cover operating costs.

In 2014, it produced 138 tonnes and reported a loss of around £11,500.

Sales dropped significantly to estimated figures of around 60 tonnes for the 12 months to this April - nearly a quarter of the 300 tonnes required to financially break even.

Even with a £10 increase taking the price up to £60 per tonne, losses cannot be contained.

A council review says: "It was confirmed by industry representatives that the last remaining user of the ice plant had fitted a refrigeration system to their boat and would therefore no longer be requiring ice.

"As there is no longer any current demand for ice at Kallin, and confirmation has been received from industry representatives indicating that there are no expected changes to this position in the future, it is recommended that the Kallin ice plant be closed and options for its disposal are investigated."

Loss-making ice plant faces closure

6 June 2016