US chemical major Dow has
announced that it will close its UK
ethylene oxide (EO) plant in Teesside
at the end of January 2010. The
closure is already having a knock-on
effect on chemical plants in the area,
with UK natural-based speciality
chemicals producer Croda closing its
Wilton facility, which is dependent
on EO.
The Unite trade union believes
that further plants at the site could
now be under threat. The North East
Process Industry Cluster (NEPIC)
states that a recent report found that
2500 jobs could be at risk. The news
comes as UK unemployment hits a
14-year high of 2.38m.
‘Dow’s decision makes our
operation no longer economically
viable,’ says Steve Foots, president
consumer care Europe for Croda.
The closure of Dow’s plant will result
in the loss of 55 jobs and another
125 people will be made redundant
when Croda closes its facility at
the start of 2010. Dow attributes
the plant closure to a number of
factors including reduced demand
and profit margins, particularly for
monoethylene glycol. According
to Phil McNulty, national officer
for the chemical sector at Unite,
this is not the whole story and EO
pricing disagreements with Shell,
a downstream processor of the
chemical, have contributed to the
plant’s closure.
McNulty says that it appears
that other chemical concerns at the
Teesside site, including Artenius
and Petroplus, are gearing up
to announce job cuts, with more
closures a real possibility. The
Teesside site is said to contribute
£560m/year to the UK economy.
‘EO is a strategic material for a
modern industrial society… we will
now have to import the raw materials
for products, like detergents and
shampoo, soap and softeners,’ Stan
Higgins, ceo of NEPIC says.
Dow’s Teesside facility in north
east England, which it bought from
ICI over 10 years ago, is the only
ethylene oxide plant in the UK. There
are other ethylene oxide facilities on
the continent, but import is costly
and difficult due to legislation
controlling the transport of the
potentially hazardous chemicals.
‘There has to be some
intervention to ensure ethylene oxide
production continues at the site and
I fear for the future of the whole site
if nothing happens,’ McNulty says. ‘I
fear for the downstream businesses
too and the economy of the UK.’
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