Plans to build a sizeable new maltings to Rothes have been delayed after the developer blamed turbulence in global trade for them to hold off on the project.
It comes as the whisky sector say they are under “considerable strain” after a recent downturn in exports, citing global “tariff barriers.”
Distillers across Scotland have raised worries after US president Donald Trump introduced 10% tariffs on alcohol exported to the country from the UK.
This has now contributed to maltings supplier Simpsons Malt re-evaluating their own future plans – even going as far as to push back construction of their new Rothes facility.
The facility on the outskirts of Rothes is set to produce 85,000 tonnes of malt a year, create up to 40 jobs and was due start construction in 2026 – but is now delayed until as late as 2030.
Why is the Rothes maltings project delayed?
Developer Simpsons Malt blamed “ongoing uncertainty” in the Scotch whisky sector in a revised application sent to Moray Council.
In the application, Simpsons said “pressure on consumer spending,” tax increases and “turbulent global trade” led to the decision to pull back.
They added it is “highly likely that turbulent global trade conditions will extend beyond 2025” and asked the council to drop their 2026 deadline to start construction.
The council has now agreed to extend the deadline till the end of 2030, when Simpsons are hopeful construction can begin by then.
What is happening in the whisky industry?
Simpsons Malt said the value of whisky exports over 2024 had decreased by 3.7%.
A spokesperson for the Scotch Whisky Association said the industry is facing “a number of challenges” and “businesses of all sizes are operating under some considerable strain.”
The association represents a collective of over 90 companies involved in the “UK’s biggest food and drink export.”
They blamed increasing costs, less consumer spending and “access barriers in key markets” as the reasons for the current downturn.
A spokesperson said: “The scotch whisky industry is historically resilient, and has weathered similar storms in the past, so these short term challenges are tempered by the confidence in long term growth.”
They cited the recent UK-India trade deal as one example, which halved whisky tariffs from 150% to 75%, as an opportunity to grow the sector
The spokesperson added: “We continue to call on the Scottish and UK Governments for domestic support for Scotch whisky producers, and for productive talks with international counterparts to reduce tariff barriers at pace.”
What are the Rothes maltings plans?
A facility producing 100,000 tonnes of malt a year was originally submitted back in 2021 and approved in 2023.
However, Simpsons has since made a number of amendments to their plans including reducing the facility to 85,000 tonnes a year.
The proposed site lies further out of Rothes, just along the road from the Corde biomass plant, which opened in 2013.
It is anticipated that barley will be used as the factory’s main malt source, and will be processed in a facility reaching up to 20 metres in height.
Part of the application includes widening the B9015 at the entrance to the site, creating a turning lane for lorries and other maltings traffic.
A footpath creating an active travel link between the site and Rothes was also agreed as part of the application.
Council sympathise with maltings developer
Planning committee chairman David Gordon said he “sympathises” with the developer’s situation because the whisky industry had “slowed down.”
Senior planning officer Andrew Miller said it was “hats off” to the developer for coming forward to make sure the plans were “all above board.”
He also added that no objections or public representations were received during the application process.
It is now up to Simpsons to decide when they want to go ahead with the development between now and 2030.
Conversation