SABIC to shut PP lines in Germany, PPO asset in the Netherlands

19 April 2013 11:16  [Source: ICIS news]

SABIC building (source: SABIC)LONDON (ICIS)--SABIC will shut down assets in Bergen op Zoom, the Netherlands, and Gelsenkirchen, Germany, as part as part of a previously announced restructuring programme which will see 1,050 jobs cut, the Saudi Arabian petrochemical major said on Friday.

The company said two older polypropylene (PP) lines in Gelsenkirchen have been earmarked for closure, while a polyphenylene ether (PPO) asset in Bergen op Zoom will be shut down.

SABIC said business from the PPO asset would be transferred to its site in Selkirk, the US. Business from the two units in Gelsenkirchen will be transferred to another PP facility at the same site, the company added.

SABIC also confirmed jobs will be cut in Raamsdonkveer, Geleen, Bergen op Zoom and Sittard in the Netherlands, Teesside in the UK, Cartagena, Spain and in Gelsenkirchen.

The restructuring programme is expected to be completed by the end of 2014, however SABIC will start implementing the changes as soon as possible.

“We have started the consultation process with the respective works councils and employee representatives this week. The timing of the outcome of this consultation process may differ per location but we are hoping to provide clarity as from mid-July,” SABIC said.

Around two thirds of the planned job cuts across Europe will involve SABIC employees. The remainder of the cuts will come from contracting staff. SABIC said the job cuts will take place across all business units, operations and staff functions. Information about cuts at a departmental or individual level are subject to the consultation process, it added.

The company did not disclose the cost of the restructuring.

On Thursday, SABIC announced a planned restructuring programme designed to strengthen its European businesses. The company said at the time 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.”

SABIC added that lower consumer spending in the European market has led to slower growth, which has “structurally reduced demand and squeezed margins”, while competition has intensified from other regions, especially from the US and Asia.


By: Franco Capaldo
+44 (0)20 8652 3214



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly