Jobs at risk as Saudi firm Sabic confirms closure of Olefins 6 cracker on Teesside
A chemical plant is set to close on Teesside following a decision by its Saudi owner.
It is understood about 100 jobs could be at risk at the Olefins 6 cracker, on the Wilton site at Redcar, as a result of the permanent closure which was confirmed by SABIC on Wednesday (25 June).
Union bosses have labelled the move as a "devastating blow" to workers and the local economy.
Petrochemical group Sabic said it regretted the decision which was communicated to employees and stakeholders this morning.
A spokesperson said: "This decision is the result of a thorough analysis aimed at optimizing competitiveness and aligning with Sabic's long term strategic priorities to ensure the company remains agile and resilient in an evolving global landscape.
"Sabic is committed to carrying out a meaningful collective consultation with employee representatives and a fair redundancy process consistent with applicable legal requirements, as well as implementing other support measures aimed at minimizing the impact on employees.
"The exact number of job losses will be determined once this consultation has been completed."
Unite said about 100 of its members face redundancy.
The union's regional officer, Fazia Hussain-Brown, said: "The potential loss of so many jobs in the area is a devastating blow to our members and their families, as well as the local economy.
"Unite will be actively engaging with Sabic throughout this consultation process, using all of the resources available to support our members."
Sabic's Olefins 6 facility, which opened in 1979, produces the raw material ethylene.
It has been offline since the end of 2020 and was due to be converted to run entirely on gas feedstocks.
Since it has been down, Unite members have been paid to keep the plant safe and to have it ready to come back online for future operations.
The union said its owner, Saudi-run Sabic, made a net profit of almost £300m, last year.
However, last month it was reported that the firm could be looking to sell its European petrochemicals business amid high energy costs.
The SABIC spokesperson added: "Sabic's LDPE plant operations in Teesside will continue to operate normally.
"The company's priority is to support our employees during this difficult time and to remain focused on the safe, compliant, and reliable operation of its remaining assets on Teesside.
"SABIC will continue to focus on enhancing operational efficiency to position the company for sustainable long-term profitable growth."
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