100 jobs to go as site to close

At least 100 jobs are likely to be lost with the closure of a long-established chemicals site in the North East.

- TOM KEIGHLEY Business writer [e-mail]

Sabic's cracker plant on Teesside is set to close after 46 years after its Saudi owners reviewed its future in the light of changes in global markets.

The Olefins 6 facility, which produces the raw material ethylene, had been offline since the end of 2020 and was due to be converted to run entirely on gas feedstocks.

But the multimillion-pound project was paused last year as the Saudi state-owned Sabic contended with what it said was uncertain market conditions and looked to re-establish a business case for the significant investment.

Sabic's nearby low-density polyethylene (LDPE) plant - which had been fed by the cracker will remain open with feedstocks coming from elsewhere.

Sabic has not said how many jobs will be impacted by the decision, but together the Teesside facilities employ about 330 people directly and a similar number via contractors. Unions have said that 100 jobs will be lost. In a statement Sabic said: "Sabic has made the decision to permanently close the Olefins 6 cracker at Teesside, United Kingdom's manufacturing site.

"The company regrets this decision which has been communicated today to employees and external stakeholders.