Lanxess shuts Canada NBR plant, cuts 270 jobs

01 February 2008 16:02  [Source: ICIS news]

TORONTO (ICIS news)--Lanxess will permanently close its acrylonitrile butadiene rubber (NBR) plant in Sarnia, Ontario, in the second quarter, shedding 270 jobs, due to high energy and raw materials costs in Canada, the German producer said on Friday.

 

NBR production will be taken over by Lanxess' French site near Strasbourg and North American customers would be supplied from there, it said in a statement.

 

"Because of the constantly rising energy and raw material costs in Canada, there is no alternative to this efficiency program," said Werner Breuers, a Lanxess board member.

 

"Our modernised plant in La Wantzenau near Strasbourg is due to its scale in a position to take over the entire NBR production from Sarnia at much more competitive conditions, thanks to the work that has been carried out to realign the French site,” he added.

 

Lanxess, which employs 750 workers at Sarnia, added it was expanding butyl rubber production at Sarnia but did not disclose capacity details.

 

In 2006, Dow Chemical announced the closure of all its manufacturing facilities at the Sarnia petrochemicals hub, mainly because of insufficient feedstock availability following the suspension of ethylene shipments on the Cochin pipeline from Alberta.

 

Ontario has suffered a series of plant closures and job losses in the manufacturing sector, including chemicals and plastics, in recent years, with producers citing high energy costs and the strong Canadian dollar.


By: Stefan Baumgarten
+1 713 525 2653



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