29 June 2009 16:43 [Source: ICIS news]
LONDON (ICIS news)--Croda will close its oleochemical plant in Liverpool, UK, by the end of the year and make the entire workforce redundant, a company source said on Monday.
“We are looking to close the plant in December and as a result we will not be selling glycerine from the plant in [the fourth quarter],” the source said.
Around 150 employees will lose their jobs as a result of the plant’s closure, Croda said.
The plant will close because of the poor fatty acids market in Europe, which makes up 85% of the plant’s production output, Croda said.
“There are lots of refiners, so the loss of volume on the market will barely be felt,” said the source.
Demand is down dramatically in the European fatty acids market from levels recorded in 2008, according to market sources.
The glycerine market is oversupplied, with third-quarter contract prices expected to decrease by €60/tonne ($85/tonne), according to global chemical market intelligence service ICIS pricing.
The plant has a total capacity of 100,000 tonnes/year, with 85,000 tonnes/year for fatty acid production and 15,000 tonnes/year for glycerine.
($1 = €0.71)
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