Labour M.P. for Middlesbrough South and East Cleveland, Dr Ashok Kumar today (16th July) said he was ‘saddened’ by the news of job losses at SABIC’s plants at Wilton and North Tees, but stressed that despite these cut-backs the overall future for chemical production on Teesside was still ‘optimistic’. 

SABIC today announced the plans for closure of the Aromatics 2 unit at the SABIC UK Petrochemicals North Tees Site near Seal Sands and the Paraxylene plant at the Wilton Site near Redcar. The plants manufacture chemicals used for the production of polyethylene and SABIC say that about 200 staff could be affected – although they will be embarking on a major exercise to minimize the blow through voluntary redundancy and redeployment to other parts of SBIC’s Teesside operations. 

The restructuring plans are not all negative, as SABIC also announced an upgrade of the remaining Aromatics plant at North Tees, and the continuation of the use of feedstock from that unit so as to optimize its Cracker operations across Teesside. 

Ashok said “I am saddened by this news, but I also have to say that SABIC have reassured me that they will make very effort possible to minimize the blow by looking to redeploy staff elsewhere, and by looking for recruits for voluntary redundancy and early retirement.  Many of the staff at the affected plants are highly skilled, and I expect many to find similar well-paid work in the local chemical sector” 

“Overall, I believe the future for chemicals on Teesside is still very healthy.  The cranes are up on the skyline at Wilton as new plants are being built, and only yesterday we had the news that the Sonhoe refinery – one of the biggest projects that Wilton will be hosting – is on course and will be making a significant addition to Teesside’s chemical capability”

“Obviously, the international financial situation will be affecting the chemical sector, as with all industrial sectors, but I believe the strengths on Teesside are such that we can comfortably ride out the storm”