Sabic Innovative Plastics (SIP, Bergen op Zoom / The Netherlands; www.sabic-ip.com) is to cease manufacturing ABS in Europe through the closure of its Grangemouth / UK facility from 31 July 2009. The action will result in the loss of 95 jobs. SIP acquired the site in 2007 when it purchased GE Plastics – see Plasteurope.com of 22.05.2007 – who had taken over the facility when it bought the plastics and chemicals operations of Borg-Warner in 1988. Production at Bergen op Zoom / The Netherlands was shut down by GE Plastics in 2003 and in 2008 ABS manufacture was ended at SIP’s Villers-Saint-Sulpice / France site with the loss of 165 jobs and the transfer of part of the production to the Grangemouth site – see Plasteurope.com of 27.11.2007.

SIP spokesperson Helen Vandebovenkamp said that the company had carried out a collective consultation process at Grangemouth with its employee representatives and that agreement had been reached on the proposal to end production. Agreement was also reached on severance terms and Sabic will continue to offer various outplacement programs and support services such as counselling to assist staff in new job selection and training for the next few months.

Vandebovenkamp added that the proposal to cease operations was based on an extensive business review, “in order to maintain a competitive position in the marketplace, manage cash, and better align the company’s manufacturing asset utilisation.”

Sabic said that there will be limited impact on customers. It will continue to supply most ABS grades from alternative global production facilities. Options for future use of the Grangemouth site are currently under review.