Russia's Sibur to cut staff, close plants to reduce costs

15 June 2009 14:51  [Source: ICIS news]

(Recasts, clarifying second paragraph and adding detail on employee numbers)

LONDON (ICIS news)--Russian petrochemical producer Sibur is reducing its workforce and plans to close plants to help cut costs during the downturn, the company’s CEO said on Monday.

Sibur’s workforce would number around 60,000 by the end of the year compared with a headcount of over 100,000 in 2003. Since then the number of employees has gradually decreased due to increased efficiency, outsourcing and moving staff to subsidiaries.

“As the petrochemicals industry is one of the most hit we sometimes cannot offer our employees a competitive package and in some cases they leave,” said CEO Dmitry Konov.

Sibur would look to close sub-scale sites and expand in other places, Konov said at a press briefing. “We have made some decisions but have not yet executed them fully.”

The company was also looking to exit its tyres business which has been hit by the automotive downturn. Konov described it as a “disaster”, saying it would be very difficult to find interested parties, especially under current market conditions.

The CEO also outlined further details of delays to Sibur’s polypropylene and polyvinyl chloride (PVC) projects in Russia.

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By: Mark Watts
+44 20 8652 3214

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