LONDON (ICIS)--US-headquartered producer Dow Chemical is to close its methyl methacrylate butadiene styrene (MBS) plant in Grangemouth, UK, as a result of falling demand, a company spokesman confirmed on Wednesday.
The company informed employees at the site on Tuesday that manufacturing is to cease and that the site is to be closed, as a result of the impact of prolonged economic uncertainty on demand levels.
“When coupled with increases in manufacturing costs, competition, fluctuating raw material and energy prices, the facility has been operating in an increasingly challenging environment,” Dow said in a statement.
The decision followed a review of the Dow Plastics Additives division business strategy, and was based on the unit’s financial performance, “challenging” economic conditions and weak demand, the company added.
“The current economic climate means we feel we cannot sustain an economically viable site. I understand that this is a difficult time to hear such news,” said site manager Lluis Argilaguet.
“In 2014, we will begin the formal employee consultation process,” he added.
The company did not disclose a timeline for the shutdown.