German synthetic rubber maker ARLANXEO has launched consultations with worker representatives over the potential closure of its Port Jerome facility in France, citing persistent weak demand and declining competitiveness in the European chemicals industry.
The company, which is majority-owned by Saudi Aramco, had begun an information and consultation period with the Works Council at the site, located in northern France. A final decision on the closure will be taken after the mandatory consultation process concludes and approval is obtained from the French labour authorities, DREETS.
“The European chemical industry continues to face persistent weak demand and declining competitiveness driven by rising costs, unbalanced global markets, and increased regulatory pressure,” said Stephan van Santbrink, ARLANXEO chief executive.
“These conditions have generated a significant burden on the sector across the regional value chain. ARLANXEO has not been an exception to these challenges. The Port Jerome site has remained in a structurally loss-making position. Despite numerous improvement efforts, we do not foresee a viable path to a sustained structural improvement.”
The company did not disclose how many jobs would be affected by a potential closure, nor did it provide details on the facility’s production capacity or annual output.
Van Santbrink acknowledged the impact on workers, saying: “We recognise the impact a potential closure may have on our employees, and we regret the need to consider these steps. We will continue to treat all employees with respect. If we decide to cease operations at the site, we will do our utmost to assist in finding alternative solutions for all impacted employees. In addition, we intend to provide impacted employees with a social plan which reflects their valued contribution to ARLANXEO.”
The announcement adds to a growing list of European chemical producers struggling with high energy costs, sluggish demand and competition from lower-cost producers in Asia and the United States.
ARLANXEO said it would work closely with all affected internal and external stakeholders to minimise the impact of the intended closure.
Comments (0)
ADD COMMENT