Sabic Europe: Closure of Aromatics Operations
Sabic Europe, Sittard, Niederlande, announced plans to re-structure its Aromatics operations based on Teesside, UK, following a wide-ranging review of the long-term viability of the business. The plans involve closure of the Aromatics 2 unit at the Sabic UK Petrochemicals North Tees Site near Seal Sands and the Paraxylene plant at the Wilton Site near Redcar. The plans also include an upgrade of the remaining Aromatics 1 plant at North Tees.
The economics of the units planned for closure have become unviable and have forced Sabic Europe to face up to this difficult decision. The aim of the proposed way forward is to bring the total Sabic UK Petrochemicals site operational and commercial performance to a sustainable level.
The proposed closure of the Aromatics 2 and Paraxylene units is expected to affect approximately 200 operational and support positions. The main impact of this will be at the manufacturing facilities on Teesside, but the numbers also include some job reductions in Sabic Europe’s support functions in The Netherlands. A clearer idea of job numbers will be known once the full details of the restructuring plans are worked out.
It is currently envisaged that the proposed closures will take effect by end 2008.
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