Job Losses Loom as Sabic Shutters Iconic Teesside Plant After 46 Years

Sabic, one of the world’s leading petrochemical producers, has announced the closure of its Olefins 6 cracker plant in Wilton, Teesside, affecting hundreds of jobs in the north-east of England. After 46 years of operation, this major facility, which plays a key role in producing ethylene for various products, will cease operations, leaving 330 employees facing uncertainty. The Saudi Arabian firm cited a thorough analysis to optimize competitiveness as the reason for this decision, prompting a strong backlash from the Unite union, who described the potential job losses as a “disgrace” from a profitable company that reported nearly £300 million in net profits last year.

Last month, reports emerged suggesting Sabic might be considering selling its European petrochemicals business, largely in response to high energy costs. The Olefins 6 facility has not been operational since the end of 2020 as it awaited conversion to run entirely on gas feedstocks. Workers, despite maintaining the plant in readiness for a possible restart, are now facing the dire prospect of redundancy.

Sharon Graham, general secretary of Unite, criticized the decision, emphasizing the unfairness towards dedicated employees having to face job loss from a financially thriving company. Regional officer Fazia Hussain-Brown echoed these sentiments, calling the announcement a devastating blow with few other job opportunities available in the area, which has led to significant angst among the workforce.

Sabic promised to engage in a meaningful collective consultation with employee representatives and adhere to legal requirements for a fair redundancy process, stating that their commitment to supporting affected employees remains a priority. Meanwhile, operations at the LDPE plant on Teesside are expected to continue as usual.