Job cuts at Arkema Chauny site as production ceases in Mar 2014

20 September 2013 16:45 Source:ICIS News

LONDON (ICIS)--A total of 71 jobs are to be lost at the Chauny, France, site of specialty chemicals producer Arkema following a decision to cease production at the site in early 2014, a company spokesperson confirmed on Friday.

The company is to cease production at the site, which produces phthalic anhydride (PA) and dioctyl phthalate (DOP), in 2014. Arkema attributed the decision to a decline in market demand for its products and what it identifies as “substantial overcapacity” of supply of those products in Europe.

The Chauny site is part of Arkema’s acrylic monomers business unit, and produces material for the plasticizers and resins markets. The site has a capacity of 70,000 tonnes/year of DOP and 90,000 tonnes/year of PA, and also produces diethyl hexyl phthalate (DEHP) and fumaric acid, according to the spokesperson.

She said: “In recent years, there has been a significant decline in market demand for these products due to the structural decline in the market for resins and plasticizers in Europe, as well as to strong competition from alternative products.

“Given these circumstances, the cessation of all activities of the site is now under consideration. It is planned that production activity at the Chauny site will cease in March 2014,” she added.

Arkema added that it is looking to find alternative employment, either internally or externally, for employees affected by the loss of production.

By Tom Brown