Grangemouth - on the way down

[william]

Well were really in the shit now - Grangemouth has been closed this is the petrochemical factory not the actual processing plant that produces the fuel, however that plant remains closed at present.

Blatant cutting of costs - get rid of the non profitable parts of the company and scare the rest of the employees left to sign up and hand over thier rights. Its a dark day as I believe that this guy will close the plant if he doesnt get his way.

However they are talking about getting the processing plant up and ready to process oil shale gas from the US. yeah hes sitting with a plant right slap bang in the middle of one of the biggest areas of shale gas - he wants to trim costs down as much as possible before he ramps up production and makes more millions.....

Not that good a place to be just now if your in grangemouth as you will either lose your job or be hammered into submission in terms and conditions....

[Robches]

You are quite right, the evil capitalist bastard should agree to lose ?10 million a month to keep 800 people in work. The aim of business is after all to employ as many people as possible, not to make profits.

[David Johnson]

"You are quite right, the evil capitalist bastard should agree to lose ?10 million a month to keep 800 people in work. The aim of business is after all to employ as many people as possible, not to make profits."

What a charmingly na?ve and gullible chap you are, Robches.

For your homework I will set you the following question -

How does a chemical company go from nowhere to be the third biggest, chemical company in the world in the space of 15 years?

Is it

1. By brilliant financial acumen, they turn loss making companies into profitable companies like modern day alchemists?

2. Loading the acquisitions you make with debt you borrow to make the purchases in the first place?

In the case of Ineos they had to restructure 7.5 billion euros of debt in 2010 in order to keep afloat.

The next bit of homework for you is work out why so many hedge funds etc etc, companies going down a rapid acquisition route take this approach.

You can cheat on your homework by using the example of Man. Utd if you wish.

[cockneygeezer2009]

"Well were really in the shit now".

Thought we were in the shit from 2008. Lol.

[Arginald Valleywater]

Don't panic. King Alex of Salmond will wave his magic bell end and Scotland's streets will be paved with Tunnock's Caramel Wafers and Diamonds.

[Robches]

You are so right David, it is the job of the capitalist to close down as many profitable businesses as possible.

[David Johnson]

More gullible stuff from the chap who still hasn't got the hang of how threads work after years of using the forum.

For your next bit of homework - you failed the first, completely.

What is the big difference between the capitalism of the second half of the 20th century and that of today? I will give you a hint. It is related to the nature of short termism and long term involvement.

Over to you and no cheating!

[Arginald Valleywater]

A real smack in the chops for the area but the idea that a listed company will keep a loss making site open for social reasons is ludicrous. By some mystery of the stock market your pension may be investing in the parent company. So it will be OK for your fund manager to waste your hard earned contributions on a loss making enterprise, thereby reducing your chances of a comfortable retirement? I am sure you wives and children will be happy knowing their family in Somerset is struggling to pay their way while a loss making business is propped up by the money that should be in their monthly pension cheque? If you owned say a small business, like a corner shop? You were leaking money hand over fist...would you stay open and go bankrupt just to keep a couple of part-time staff employed? The long term affect on your credit history, possible loss of house etc will be savage...you OK now to stay open?
Irn Bru anyone?

[Robches]

David:

I urge you to set up a business, and I would like to apply for a job when you do. Then I will know that you will be happy to pay me whether the business makes a profit or not. That is the job of capitalists isn't it?

[Gentleman]

Surely this shows how messed up our country is when infrastructure which a country needs to be viable (and some would say the basis of organised society) becomes business.

For example before privatisation electricity, water and others were utilities but are now called businesses.

So now we can be blackmailed at the drop of a hat by shareholders/vested intrests.