18 April 2013 11:20 [Source: ICIS news]
(adds further detail on SABIC’s restructuring plans)
LONDON (ICIS)--Saudi Arabian petrochemical major SABIC on Thursday announced plans to cut approximately 1,050 positions, as part of a restructuring programme designed to strengthen its European businesses.
The planned restructuring also includes the shutdown of certain European assets.
SABIC said the planned organisation has been redesigned “to be more focused and efficient at delivering to customers’ needs at the highest environmental, health and safety standards.”
Around two thirds of the planned job cuts across Europe will involve SABIC employees. The remainder of the cuts will come from contracting staff.
The exact locations of the job cuts and asset shutdowns were not disclosed. SABIC also did not provide any timeline for the planned restructuring, however, it has initiated consultations with relevant works councils and trade unions.
Koos van Haasteren, vice president of SABIC in Europe, said: “Once the restructuring process has been completed, I am confident that SABIC will be in an even stronger position to meet customer needs, support its employees and contribute to the communities and environments within which we operate.”
SABIC said the European market faces new competitive challenges, as lower consumer spending on houses, cars and appliances and investments in infrastructure projects has meant slower growth.
“These developments have led to structurally reduced demand and squeezed margins. At the same time, competition has intensified from other regions, especially from the United States – which has the advantage of shale gas development – and Asia, which has increased local production capacity and consumption,” the company added.
SABIC said as part of the restructuring it will continue to invest in plant improvements, new technologies and innovation.
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