News – full story

SABIC has announced that it to cut more than 1,000 jobs across its European operations, blaming an ongoing drop in demand across the region.

The company – the biggest chemicals producer in the world – will close down some assets across the region, though it has not yet revealed which ones they will be. It has already started talks with various works councils and trade unions on where the cuts will fall, and says that around a third of those to lose their jobs will be contractors, with the rest being employees.

In a statement, the company claims that the European market “is facing structural changes that are likely to set a new course for future competitive challenges.”

“Our industry continues to face slow growth, as consumers’ spending on houses, cars and appliances and investments in infrastructure projects are down. These developments have led to structurally reduced demand and squeezed margins.”

It adds that at the same time, competition for chemicals production has intensified from other regions, especially from the US, which has the advantage of shale gas development, and Asia, where both local production capacity and consumption are growing at an incredible rate.

Sabic has confirmed that 110 of the cuts will come from its Wilton, UK, petrochemicals operation. The site’s manufacturing director, Mike Ducker, said other jobs may be offered at other Sabic operations.

“We do not make proposals about job reductions lightly and fully understand the impact this will have on our people,” he told BBC News. “However, a number of our competitors have already announced reductions to their European workforce.”

The company’s European vice-president, Koos van Haasteren, claims that despite the cuts, the company remains committed to Europe.

“Once the restructuring process has been completed, I am confident that Sabic will be in an even stronger position to meet customer needs, support its employees and contribute to the communities and environments within which we operate,” he says.