Arkema to close two France vinyls ops, cutting jobs

27 November 2008 11:24  [Source: ICIS news]

LONDON (ICIS news)--Arkema plans to close two loss-making vinyl products plants in France resulting in the loss of 169 jobs, the specialty chemicals company said late on Wednesday.

 

Arkema said it would discontinue aluminium chloride production at its Jarre site on 30 June 2009, while reorganising the hydrogen peroxide and chlorine plants to optimise competitiveness by reducing fixed costs.

 

The company would invest €7m ($9m) to improve reliability at the site, which would now benefit from increased chlorine supply.

 

Vinyl chloride/vinyl acetate copolymer production at the Saint-Auban site would also be closed, the company said.

 

The site, which produced rigid film for the packaging sector, would be refocused on making PVC paste and T111 (trichloroethane 1, 1, 1) as well as hydrogen chloride for third-party customers.

 

Arkema said it would transfer 130 jobs at Saint-Auban to Arkema Interservices, a company specialising in industrial services and the supply of utilities, while 96 positions would be lost.

 

Arkema has also proposed the closure of its Alphacan profiles site at Hasparren, France, which would result in the loss of 37 positions.

 

The action was subject to a preliminary legal information and consultation process involving trade unions, the company said.

 

Arkema also said it planned to centralise its goods and services procurement operations beginning in April to save €35m a year, cutting another 17 jobs at French sites.

 

($1 = €0.78)

 

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By: Mark Watts
+44 20 8652 3214

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