Strathaird Salmon, which announced the proposed closure of its Longman Drive site and the loss of 350 jobs last week, is now in discussions with Highland Council and Highlands and Islands Enterprise (HIE) over its plans.

Parent firm The Seafood Company is proposing to transfer operations from Inverness to Fraserburgh and staff are now in the process of being consulted on the move.

If it goes ahead, the Inverness factory would close next August ending Strathaird Salmon's 30-year presence in the city.

Less than 24 hours after the announcement Iain Herd, managing director of the company, met representatives from HIE and the council.

Yesterday, he welcomed the support being offered but refused to go into any further detail on the situation other than to say he looked forward to exploring options over the coming weeks.

When asked about the possibility of a rescue package to save the Inverness operation, a company spokeswoman said it was too early to pre-empt any discussions.

Following the talks, HIE and the council pledged to work with Strathaird to look at what practical advice and support can be offered to employees.

HIE will also commission an economic impact study to look at the potential effects on companies in the supply chain.

Inverness Provost Jimmy Gray described discussions as constructive and promised to work closely with both organisations. But he added: "There are still a lot of issues to address."

The company is blaming the proposed closure on the economic climate, increased energy costs and the need to consolidate its operations.

Stewart Nicol, chief executive of Inverness Chamber of Commerce, agreed businesses were facing tough times and it would be a major blow if the closure went ahead. "It illustrates the challenges that business are facing — having to look at production costs and energy issues that they are facing plus the whole range of investment in the current market situation."

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