3.4 Economic Context
3.4.1 Economic History of Levenmouth
The local economy in Levenmouth was traditionally
focussed on mining and heavy industry and the area has
struggled economically since the decline of these
sectors, particularly the coal industry, from the 1960s.
The growth of these industries was initially fueled by the
opening of the Leven Railway in 1854, linking the town
with the Thornton Junction on the Edinburgh to
Aberdeen main line. In the late 19
th
century, this was
extended to the Leuchars junction via St Andrews. The
railway between Leven and St Andrews closed in 1964.
The Leven and Thornton Junction was closed to freight
in 1966, and to passengers in 1969.
During the 1960s, coal mining, large-scale
manufacturing and port-related activities were significant
employers in Levenmouth. Methil was a principal
producer and exporter of coal for many generations, and
coal mining was a vital source of employment in the local
area. The Wellesley Colliery closed in 1964, followed by
The Michael Colliery in 1967. The collapse of coal
mining in the late 1960s, and the disappearance of much
manufacturing activity around Methil had a significant
adverse impact on the Levenmouth economy. Indeed,
the demise of coal mining and other traditional industries
during this period, combined with a limited number of
replacement employment opportunities, marked the
start of Levenmouth’s struggle with high unemployment
and associated economic and social deprivation.
A key business in the area is Diageo. Diageo opened its
first bottling plant in Leven in 1973, to bottle various
Scotch whiskies. The £22m extension to the United
Distillers (now Diageo) Cameron Bridge grain distillery
was officially opened in May 1991, making it one of the
largest distilleries in the world. While the Diageo
operation has been a success in the area, to a large
extent this has been outweighed by a number of local
business closures that have had a detrimental impact on
the local economy. These include:
British-Norwegian oil and gas construction firm
Kvaerner came to Methil in 1972, with demand for
off-shore construction expected to last just 5 years.
However, Kvaerner operated from its Methil Docks
base for almost 30 years, and employed around
2,000 staff at its peak. The company ceased
production of its off-shore structures in Methil by the
end of 2001.
Scottish Power’s coal slurry-fired power station was
mothballed in 2000. The Methil power station, which
had employed around 70 staff, was eventually
demolished in 2010.
Methil-based bogie manufacturer ABC Naco closed
in 2002, with the loss of 145 jobs. The closure was
due to the difficulties facing the steel sector and the
subsequent lack of investment from its US parent
company.
Wemyss Brickware closed in 2002, with the loss of
60 jobs. The closure was blamed on difficulties in
sourcing good quality ‘red-burning’ facing bricks,
and a major rise in gas prices. The company had
been in Leven for almost 100 years and was one of
the last independent brickware companies in the UK.
Despite these closures, there has been some significant
investment in the area since the turn of the millennium
that has had a positive impact. A selection is set out
below:
Burntisland-based, off-shore oil and gas fabrication
company BiFab, expanded its business operations
to Methil in 2003. The company took over the former
Kvaerner yard at Methil Docks, providing some new
employment opportunities in the local area, including
a number of Modern Apprenticeships. BiFab was
taken over by JV Driver in 2018.
The Offshore Renewable Energy (ORE) Catapult
has been granted a 10-year extension by the
Scottish Government to operate its 7-MW
Levenmouth offshore wind demonstration turbine for
research and technology development until 2029.
Diageo invested £2.6m in its bottling plant in Leven
in 2003, followed by a £9m expansion in 2006, to run
new products and increase the company’s flexibility
to meet future demand. In 2009, the company
announced a £86m investment in a new packaging
plant that led to the creation of over 400 jobs. In
November 2012, Diageo's Scotch whisky bottling
facility was officially opened. Diageo continues to be
a major employer in the Levenmouth area, with more
than 1,250 people employed at its 171-acre site at
peak times.
The new £1.5m Leven Bus Station was opened in
2007.
Phase 1 of the Energy Park Fife at Methil Waterfront
was completed in 2006, and in 2009 Scottish
Enterprise committed a further £13m to upgrade the
quayside and improve coastal protection. The
Energy Park was identified as a key project to
receive accelerated funding, as part of the Scottish
Government’s response to the economic downturn.
In addition to these investments, fourteen Strategic Land
Allocations were laid out in the Fife Structure Plan 2006-
2026, showing large-scale expansion in Fife over the
next 20 years: