Sabic Olefins cracker closure a 'devastating blow to our region'

FACILITY TO CLOSE AFTER 46 YEARS WITH FEARS FOR FUTURE OF ITS 330 WORKERS

- By TOM KEIGHLEY

CHEMICAL workers on Teesside have been left reeling having been told Sabic’s Olefins 6 facility will close after 46 years looming large over the area's industry.

Staff at the Wilton site were delivered the news of the decision by the plant’s Saudi owners, who said the move is the result of a “thorough analysis aimed at optimising competitiveness”.

The decision has been described as a “disgrace” and a “devastating blow” to Teesside industry.

Sabic’s announcement to staff at the landmark chemical plant caused upset and shock as it was revealed the facility would not reopen, having been offline since the end of 2020.

Generations of ‘cracking’ on the Redcar site had come to an end with Saudi state-owned Sabic citing competitiveness issues as reason for the move. Consultations with staff are set to start next month.

While Sabic has not said how many jobs may be impact, union Unite has confirmed around 100 of its members are facing redundancy.

Overall, Sabic employs about 330 people directly across its Teesside operation, which also includes the low-density polyethylene (LDPE) plant that is not closing, with the same number of contractors thought to be employed at the site.

Unite pointed to Sabic's near £300m net profit in 2024, up from a net loss of £542m the year before, and said it was “a disgrace that valued workers are being threatened with redundancy by a profitable company.” First quarter 2025 results for the firm revealed a $323m (£242.6m) net loss.

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.