SABIC to axe over 1,000 jobs in Europe
22 Apr 2013
Bergen op Zoom, The Netherlands – SABIC is to shed 1,050 jobs as part of a restructuring of its chemicals operations in Europe. Two thirds of those affected will be company employees, the remaining third contracting staff.
The cuts, said SABIC, are intended to strengthen its European businesses for the competitive challenges ahead, whilst maintaining environmental, health and safety standards.
The planned restructuring includes the shutdown of various assets, though the chemicals maker said there would also be continued investments in plant improvements, new technologies and innovation.
According to SABIC, the European market is facing structural changes that are likely to set a new course for future competitive challenges.
The industry, it said, continues to face slow growth and squeezed margins, as consumers’ spending on houses, cars and appliances and investments in infrastructure projects are down.
Meanwhile, competition has intensified from other regions, especially from the US, which has the advantage of shale gas development, and Asia, which has increased local production capacity and consumption.
“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,” said Koos van Haasteren, Vice President SABIC in Europe.
The company has already initiated consultations with the relevant Works Councils and trade unions regarding the planned restructuring. About 10% of the lay offs will reportedly be in the UK.
