LyondellBasell will cut 3,000 jobs, close 10 plants

08 April 2009 22:52  [Source: ICIS news]

HOUSTON (ICIS news)--LyondellBasell will cut 3,000 jobs and close at least 10 manufacturing plants as part of a new plan to eliminate $700m (€525m) in fixed costs due to deteriorating market conditions, the Dutch chemical major said on Wednesday.

The job cuts represent 17% of the company's workforce. Additionally, 2,000 contractors will be cut, approximately 30% of that workforce.

Twenty offices and research and development sites will be closed as well. Many of the plant closings have been announced already or completed, the company said.

LyondellBasell did not specify the plants or the offices to be closed.

“This cost reduction plan is a key part of our effort to offset the current sales volume and margin weakness,” said Alan Bigman, chief financial officer.

The company’s original cost reduction plan called for eliminating $200m in fixed costs, but current market trends pushed the number much higher.

The chemical major, whose US operations and a European holding company filed for bankruptcy on 6 January, said implementation of the cuts and closures has already begun.

“Market conditions continue to be extremely challenging, and we are driving hard across all our organizations to enhance our earnings,” said chief operating officer Ed Dineen.

($1 = €0.75)

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By: Ben DuBose
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