SABIC resumes normal production at Netherlands site after strike

06 February 2013 05:25  [Source: ICIS news]

SINGAPORE (ICIS)--SABIC resumed “normal production capacity” at its site in Geleen, the Netherlands, on 5 February as workers ended days of strike, the Saudi petrochemical giant said late on Tuesday.

Production at SABIC’s two crackers and some derivative units at the site had been reduced since 31 January because of the industrial action related to negotiations over the collective labour agreement (CLA) between the company and labour unions.

The Geleen site has two crackers, with a combined ethylene capacity of 1.25m tonnes/year, and can produce 725,000 tonnes/year of polypropylene (PP).

The strike was called off despite no agreement reached with SABIC on the proposed changes to the CLA, which was drafted in 1999 when the site still belonged to Dutch specialty firm DSM.

“Due to the limited magnitude of the industrial action taken and SABIC’s fulfilment of its customers commitments through its inventories, there has been barely any material business impact,” it said.

SABIC did not provide any update on the CLA negotiations.

By: Pearl Bantillo
+65 6780 4359

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