SABIC ACQUIRES DSM's POLYOLEFINS Capacity
For Number One
Europe starts production of bio - ETBE in the Netherlands
SABIC Europe Cracker Project in
Geleen on hold
SABIC Europe signs contract to
build new HDPE plant in Gelsenkirchen
SABIC opens new high density
polyethylene plant in Germany
SABIC Europe announces plans to
streamline its aromatics operations
Start date nears at £200m SABIC plant at Wilton
SABIC Announces Restructuring
Plans for its European Operations
Saudi chemical giant to invest
nearly £1bn in Teesside plant
SABIC Europe is a 100
percent affiliate of SABIC, the largest petrochemical player in
the Middle East and the number 4 global player in polyolefins
worldwide, producing more than 5 million tons of polyethylene and
polypropylene per year.
In Europe SABIC is
a major polymer producer. The European SABIC business also
harbors the sales organization for all SABIC products
manufactured elsewhere in the world. SABIC sales in Europe amount
to almost 6 million tons of polymers, base chemicals and
The European head
office is located in Sittard (The Netherlands) and integrated
world-scale production facilities are based in Geleen (The
Netherlands) and Gelsenkirchen (Germany) with a total yearly production of
4.0 million tons of petrochemicals. In Europe, apart from
polyethylenes and polypropylenes, SABIC also produces chemical
products like benzene, acetylene and MBTE.
Geleen is also the
hometown of a state-of-the-art R&D center and a highly
qualified Technical Marketing team for expert technical support.
Sales offices operate from The Netherlands, the United Kingdom,
France, Germany, Italy, Spain, Denmark, Poland, Czech Republic
The European branch
forms part of SABIC, the largest Middle East petrochemicals
player and the number 4 player in polyolefins worldwide,
producing more than 5 million tons of polyethylene and
polypropylene per year. Apart from this SABIC is also active in
chemicals, fertilizers and metals.
Geleen (The Netherlands), SABIC Europe operates two steam
crackers capable of producing over 1,250,000
tonnes of ethylene and approximately 675,000
tonnes of propylene each year. It also
operates advanced downstream plants for acetylene, MTBE,
butadiene, benzene, gasoline components, styrene, C9
resinfeed, cracked distillate and carbon black
SABIC markets over
2 million tons of HDPE, LDPE and LLDPE in Europe. The product
range is fit to serve all major PE markets, with extrusion, blow
moulding, injection moulding and extrusion coating as the main
processing techniques. Applications are flexible packaging, such
as stretch film, shrink film, food packaging, carrier bags and
photo-coating, and rigid applications such as bottles & cans,
pipes, sheets, crates & boxes and dustbins. Around 1.3
million tons of the total volume marketed is produced in Europe.
SABIC markets 1.2
million tons of polypropylene as well as a wide range of
compounds based on this polymer. Most of these materials are
produced in our European production facilities. The product range
is fit to serve all major PP markets with injection moulding and
extrusion as most important processing techniques. Applications
are flexible and rigid packaging, fibers, housewares &
appliances, caps & closures, automotive parts (e.g. bumper
systems) and pipes.
polyvinylchloride, polyester and polystyrene
polyvinylchloride, polyester and polystyrene products are
manufactured by SABIC affiliates in Saudi Arabia: National
Plastics Company (Ibn Hayyan), Arabian Petrochemical Company
(Petrokemya), Arabian Industrial Fibers Company (Ibn Rushd) and
Saudi Arabian Fertilizer Company (SAFCO).
These polymers are
used in applications such as components in paints, adhesives and
powders (melamine), wall covering, laminated fabrics, cell foam
and pipes (PVC), fibers, yarns and bottles for drinks (polyester)
and building & roof insulation, packaging for household
appliances and containers (polystyrene).
SABIC’s polyolefins position in Europe
(production in Europe in kt)
Engineering News December 7, 2005
Aiming For Number One
Basic Industries Corp. (SABIC) acquired DSM's petrochemical
operations in mid-2002, it has been busy coming to grips with
this European-based petrochemical business. Now, its European
management team has laid out how it intends to build its business
in the region.
And the answer is clear: SABIC Europe is aiming to be one
of the top two marketers of polyolefins in Europe.
The company currently is the fourth largest seller of polyolefins
in Europe. It also occupies the same position worldwide, selling roughly 4.9 million tons
per year, behind ExxonMobil at roughly 6.5 million
metric tons, Dow Chemical at about 7.5 million metric tons, and
Basell at nearly 9.0 million metric tons.
SABIC is now finalizing plans for the big project it will rely on
to fulfill its European goal: its fifth
ethylene cracker, envisaged for its site in Geleen, the
That cracker and a series of new plants and expansions are part
of the company's Europe 1 project to expand Geleen and its site
in Gelsenkirchen, Germany.
Between Geleen and Gelsenkirchen, SABIC Europe has a total polyethylene
capacity of 1.48 million metric tons per year - 47% of SABIC's global
polyethylene capacity - and 1.09 million metric tons of
65% of total SABIC polypropylene capacity. The feedstock at
Geleen is from the company's own naphtha crackers - crackers No.
3 and 4 are its current workhorses, supplying a total of 1.25 million
metric tons of ethylene and 675,000 metric tons of propylene. Production in Gelsenkirchen
depends upon feedstock secured under a long-term contract from
the neighboring BP cracker.
Europe 1 project - budgeted at nearly $1.8 billion - is set to start up in 2009, says
Frans Noteborn, chief executive officer of SABIC Europe.
The Europe 1
project will add another 400,000 metric tons of ethylene capacity to the company's European
slate. But even more important, Noteborn says, the proposed
cracker will be a “propylene machine” that will use metathesis
technology to produce up to 620,000 metric tons of propylene. It will also make benzene and
ethyl tert-butyl ether.
Looking five years ahead, “propylene will not be tight - it
will be very tight,” Kostering says. The industry is
predicting a global demand increase over that
time of 14 million metric tons of propylene, he points out. But current
industry plans call for only 5 million more
metric tons from new crackers and cracker expansions, and another 4 million
metric tons through propane dehydrogenation and metathesis. Projected cracker propylene
output is modest because, unlike the proposed Geleen project,
most new crackers are based on ethane and don’t turn out propylene.
The company acknowledges the two other announced European
ethylene additions - Ineos’ plan for an 800,000-metric-ton
facility in Wilhelmshaven, Germany, by 2008 or 2009; and BASF's
300,000-metric-ton expansion in Antwerp by 2007. But Noteborn and his
team are not worried by the competitive threat.
June 9, 2006 SABIC Europe
SABIC Europe Cracker
Project in Geleen on hold
SABIC Europe has decided to put the development of
the cracker project on the Geleen-site (the Netherlands) on hold. The
investment costs and financial risks are too high to realize a
financially sound project on the Geleen site today.
main cause for the high investment costs is the current
overstrained market situation in the global contracting and
construction market due to the many investments projects in the
oil, gas and energy market worldwide. “
Noteborn, CEO of SABIC Europe.
SABIC remains committed to its strategy of growth for the
important European market. To realize this strategy, all options
such as the upgrading of the current asset base and supply from
the global SABIC system to strengthen the existing portfolio will
be reviewed in the coming months.
The investment would have seen the building of a
third, 520,000 mt/year cracker at Geleen, and further polymer
plants at Gelsenkirchen.
2006/4/28 Global Insight Daily Analysis
Dutch Government Approves Installation of Third Cracker at
The Dutch government has cleared the way for refiner SABIC to
build a third naphtha cracker at Geleen in the Netherlands,
after resolving issues over fiscal regulations and emissions.
'The problems connected with the plant from the side of the
government have now been resolved, and it is now up to SABIC
whether to go ahead', a Ministry of Economic Affairs
spokesperson told Platts.
Significance: Plans to build the 520,000-million-tpa
at Geleen had been held up by SABIC's concerns about carbon-dioxide
emission payments before and after 2012, fiscal
rulings and infrastructural issues. A decision on whether to
proceed with 1.5-billion-euro (US$1.86-billion) expansion is
now up to SABIC, which originally expected the cracker to
start up in the first quarter of 2006. Late last year, SABIC
said that the ongoing risk evaluation would last longer than
expected. and approval was delayed for an unspecified period.
March 22, 2006 SABIC
SABIC Europe starts production of bio - ETBE in the Netherlands
SABIC Europe announced today the start of production of bio -
ETBE [ethyl-tertiary butyl ether] at its Geleen site in the
Netherlands. First commercial deliveries to customers are
expected at the beginning of April. This investment in Geleen
enables SABIC to enter the bio-fuel market and is in support of
the EU’s implementation of the European
Bio-Fuels Directive within its member states. This plant is the
first of its kind in the Netherlands.
SABIC’s ETBE production plant in Geleen,
with an annual capacity of 140kt, converts bio-ethanol and
iso-butylene into ETBE which is recognised as a valuable
high octane gasoline blending component. ETBE in gasoline
contributes to a better air quality by reducing emissions of,
amongst others, carbon monoxide and volatile organic compounds.
July 31, 2006 SABIC
SABIC Europe signs
contract to build new HDPE plant in Gelsenkirchen
SABIC signed today
a contract with the German contractor, Uhde, for the construction
of a new bimodal HDPE (high density polyethylene) plant at its
production site in Gelsenkirchen, Germany.
The new 250 kt/y plant will come on stream in Q4 2008
and will replace the current 100 kt/y PE
plant in Gelsenkirchen. The investment in the new
project, including the infrastructural improvements at the site,
is around Euro 200 million.
“I am pleased
that after more than two years of dedicated work, we have decided
to start with the construction of the plant,”
Bazid, Managing Director Chemicals & Intermediates. “The investment in the
Gelsenkirchen site is a positive signal for the site to become
even more competitive as against other petrochemical sites in
Europe. We will be able to enhance our cost position in Europe
and satisfy our customers.”
This investment is
in line with SABIC’s growth strategy in Europe. Koos
van Haasteren, Managing Director Polymers says: “This project will further
strengthen SABIC’s leading position in the fast
growing market for the bimodal pipe business.”
production site - formerly Vestolen Hulsの子会社- was acquired in 1997. (* DSM acquired Vestolen in November 1997)
The site has since
undergone continuous modernization and expansion. After
completion of the new plant more than Euro 500 million has been
invested in the Gelsenkirchen facilities. The production has gone
up from 250 to 1100 kilo tons per year since 1998.
“A lot of effort
has been successfully made in the past years to optimize the
site. This investment will further strengthen Gelsenkirchen’s competitiveness,”
says Jan van den
Berg, Managing Director at Gelsenkirchen. “The investment of Euro 200 million
will further secure the future of the site and will be a positive
contribution to the regional economy of Nord-Rhein Westfalen.”
SABIC opens new high
density polyethylene plant in Germany
SABIC's new High
Density Polyethylene (HDPE) bi-modal slurry plant the LD6 in
Gelsenkirchen, Germany is up and running and meets the high
expectations. The first produced SABIC Vestolen A pipe grades
are commercially available from now.
The SABIC Vestolen A family is well-known for its high
quality; offering properties such as easy processability as
well as excellent pipe performance with regards to
reliability and safety. With the LD6 SABIC is ready for the
future HDPE market: The LD6 secures future product supply,
enables high-end product innovations and ensures a more
environmental friendly production process.
SABIC's LD6 is
equipped with a leading production technology that secures a
reliable and high quality product supply. The new plant will
cover a production of 250kt per annum.
Huls AG inherited the
polymer sector from the firms that succeeded I.G.
Farbenindustrie AG - Bayer AG, BASF AG and Hoechst AG dye
They were created from the demerger of I.G. Farben after
Via the mining company Hibernia AG, which held 25%
of the shares in Huls, the company acquired the
highly productive Ziegler patents which made possible
non-pressurized, oil-based manufacture of polyethelene. In
order to manufacture and market VESTOLEN, Hibernia AG and
Huls AG entered into a joint venture, VESTOLEN GmbH, in the mid-1950s.
GmbH was dissolved when Huls became the Chemicals Division of
1979. Production and marketing were combined in one Huls
business unit. In the course of a portfolio consolidation,
the VESTOLEN product range was hived off again and in 1993 it
was launched as the newly-founded VESTOLEN GmbH, which today belongs to SABIC
(Saudi Arabian Basic Industries Corporation).
Capacity SABIC ACQUIRES DSM's POLYOLEFINS
DSM HYDROCARBONS B.V.
The heart of DSM’s European polyolefins business
lies in the ethylene crackers that feed the polyethylene,
polypropylene, and EP elastomers plants as well as other
Two steam crackers with a
combined ethylene capacity of ca. 2.8 billion pounds
are situated in Geleen and operated by DSM Hydrocarbons.
Located in Geleen
(The Netherlands), SABIC Europe operates two steam crackers
capable of producing over 1,250,000
tonnes of ethylene and approximately 675,000
tonnes of propylene each year. It also operates
advanced downstream plants for acetylene, MTBE, butadiene,
benzene, gasoline components, styrene, C9 resinfeed, cracked
distillate and carbon black feedstocks.
The Europe 1 project
will add another 400,000 metric tons of
to the company's European slate. But even more important,
Noteborn says, the proposed cracker will be a “propylene
machine” that will use
metathesis technology to produce up to 620,000 metric tons of
It will also make benzene and ethyl tert-butyl ether. →
Two other steam crackers,
owned by Ruhr Oel, or ROG, a 50/50 joint venture between Veba Oel
GmbH and Petroleos de Venezuela SA, supply ethylene and propylene
to the polyethylene and polypropylene plants in Gelsenkirchen.
The Gelsenkirchen crackers are connected to the Geleen site by
the ARG ethylene pipeline.
to BP's acquisition of Veba Oel, Ruhr Oel is now operated
jointly by Deutsche BP and the Venezuelan oil company PdVSA
As a large supplier
of olefins in north-west Europe BP Refining
& Petrochemicals has the operatorship of the
petrochemicals plants in Gelsenkirchen and Münchsmünster, which are operated
jointly by Deutsche BP and its partner, the Venezuelan oil
company PdVSA. Supplies come predominantly from the
oil-refining facilities of Ruhr Oel.
There are further petrochemicals plants at
Erdoel-Raffinerie-Emsland (ERE) in Lingen, a 100%
shareholding of Deutsche BP.
The total annual capacity of the petrochemicals plants
amounts to 4.9 million tonnes. BP RP is the biggest supplier
of ethylene in the merchant market. It is also market leader
in sales of cyclohexane. In its core business of olefins BP
RP will expand its market position by means of stategic
expansion and increases in capacities.
DSM Polyethylenes presently has a total capacity approaching 3.4
billion pounds, divided as follows:
(1) LDPE - 1,342 million pounds,
(2) HDPE - 1,100 million pounds, and
(3) LLDPE - 924 million pounds.
Included in the LLDPE numbers are the pounds of EXACT(R) octene-1
based plastomers produced by Dex-Plastomers
50/50 joint venture with ExxonMobil.
A 50 / 50 joint
venture between DSM and ExxonMobil Chemical.
families, Exact® Plastomers and
Stamylex® octene linear
solution PE capacity.
polymerisation process, which has a proven history of
manufacturing high performance octene copolymers.
Chemical's Exxpol® metallocene catalyst
technology, allowing the production of Exact
production site - formerly Vestolen - was acquired in 1997.
(* Towards the end of 1997, the
Dutch company DSM bought Vestolen, the polyolefins business
of Veba, Germany, giving DSM an additional 150,000 t pa HDPE
and 200,000 t pa PP.)
The site has since undergone continuous modernization and
expansion. After completion of the new plant more than Euro
500 million has been invested in the Gelsenkirchen
facilities. The production has gone up from 250 to 1100 kilo
tons per year since 1998.
The new bimodal HDPE 250 kt/y plant will come on stream in Q4
2008 and will replace the current 100 kt/y
HDPE plant in Gelsenkirchen. The investment in the new
project, including the infrastructural improvements at the
site, is around Euro 200 million.
Exhibit 3 lists
polyethylene and polypropylene plant locations and production
technologies for DSM. The Vestolen acquisition in 1997 brought DSM 3 HDPE lines each
having a capacity of 110 million pounds per year. Since then DSM
has expanded one of the lines by 50% to produce HDPEs with
bimodal MWDs for use in pipe and sheet applications.
Geleen has 3 tubular reactors with a total capacity of 1,100
million pounds of LDPE within excess the largest line, which was
installed in 1993, having a capacity of 440 million pounds. DSM
produces a small amount of ultrahigh-molecular-weight
polyethylene, UHMWPE, used primarily to produce its Dyneema（R) fibers. Dyneema is produced by
DSM High Performance Fibers.
Total annual polypropylene production capacity is in excess of
2.4 billion pounds. DSM expanded its polypropylene capacity as
well in 1997 when it picked up the Vestolen assets. Vestolen was
a relatively small player in polypropylene that focused on niche
applications such as film and fibers. The Vestolen polypropylene
assets comprised a 220 million pound UNIPOL plant and 2 slurry
lines, each having a capacity of 110 million pounds per year. The
UNIPOL plant is slated for expansion to 330 million pounds per
year. DSM has added a 517-million-pound plant at Geleen and a 750-million
pound plant at Gelsenkirchen, using BP Amoco’s (horizontal) gas-phase process
technology (Innovene PP) to produce polypropylene homopolymers
and random copolymers. A third Innovene PP plant with a capacity
of 660 million pounds is slated for construction at Geleen.
Hydrocarbons Americas, Inc.
is a sales office whose primary business focus is on the sales
and procurement of products for DSM Hydrocarbons in The
Americas' geographical focus is the USA, Canada, Mexico,
Venezuela and Colombia. For the Latin American market DSM
Hydrocarbons Americas also sells caprolactam, cyclohexanone and
DSM - PE & PP Capacities, Western Europe, 2001→2005
Compact, solution *
1st January 2004 SABIC Europe closed two out-dated polyethylene
slurry lines in Gelsenkirchen (120 tpy). Production has been
transferred to a modern gas phase plant on the same site and
plants in Saudi Arabia, resulting in substantial cost savings.
Sep 17 2007
SABIC, planning 3rd PP
plant in Europe
A Teeside, Wilton chemical company, which earlier this
year said it may invest £200m locally in a new plant, has
applied for planning permission for the project.
A spokesman for SABIC
said while no decision had yet been made on whether the
investment would come to Wilton, the move would help speed up
development if the region is successful.
Paul Booth, president of
SABIC UK Petrochemicals, revealed earlier this year that the
company was hoping to secure construction of a new polypropylene
plant at Wilton.
He said Teesside was one
of two locations the company was looking at for a third European
SABIC has now applied to Redcar and Cleveland Council for
planning permission to build a new plant.
The company is currently
building a £200m polyethylene
plant at Wilton.
July 16, 2008 SABIC Europe
SABIC Europe announces
plans to streamline its aromatics operations
SABIC Europe today
announced plans to re-structure its Aromatics
operations based on Teesside, UK following a wide-ranging review
of the long-term viability of the business.
The plans involve 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 plans also include an upgrade of the
remaining Aromatics 1 plant at North Tees.
"On Teesside, SABIC
UK Petrochemicals remains fully committed to its Olefins Cracker
operations at Wilton
production at North Tees. The current construction of the
new world scale Low Density Polyethylene (LDPE)
plant and a
possible upgrading of the Aromatics 1 plant are important factors in helping
to underpin this." concludes Hughes. In addition, SABIC
Europe continues to operate its ongoing Aromatics business in the
Aug 21 2009
Start date nears at £200m SABIC plant at Wilton
A NEW multi-million-pound chemical plant on Teesside could come
on stream within weeks.
The £200m Low Density
facility is being developed by SABIC at Wilton.
Today the company said it hoped to bring the plant on stream
The facility will create around 120 permanent jobs and help
underpin the future of the company’s Cracker facility at Wilton.
A spokesman said: “The LDPE is nearing completion.
is well advanced and we hope to be able to bring the plant on
stream during September.”
When the new LDPE
plant reaches full production of well in excess of 400,000 tonnes per
will make it the biggest plant of its type in the world.
The spokesman added: “We hope to be running at full
capacity during 2010.
hope the plant will provide a boost for Sabic and the industry in
Plans for the £200m plant were originally
announced in 2004 when industrial giant Huntsman said it wanted to build
the world’s largest
polyethylene plant at the Wilton International site.
2006 Huntsman signed a £372m deal with
SABIC for the sale of a major part of its Teesside operations.
The sale comprised Huntsman’s petrochemicals assets at Wilton
- the cracker and paraxylene plants and the £200m polyethylene plant, and the
aromatics complex at North Tees.
The new plant reached a major milestone on June 22 when ethylene
feedstock was introduced to the complex for the first time.
April 19, 2013 SABIC Europe
SABIC Announces Restructuring Plans for its
SABIC today announced a restructuring program in Europe designed to strengthen
its European businesses for the competitive challenges ahead, whilst maintaining
the highest environmental, health and safety standards.
Following a full review of its European business, SABIC will restructure its
European assets and organizational footprint. The planned restructuring includes
the shutdown of certain assets and a net reduction of approximately 1,050
positions, while there will also be continued investments in plant improvements,
new technologies and innovation. SABIC has initiated consultations with the
relevant Works Councils and trade unions regarding the planned restructuring.
“Our strategy in Europe is to be the preferred leader in chemicals by delivering
‘Chemistry that matters’™ demonstrating excellent performance in environment,
health and safety, cost competitiveness, customer value and sustainable profit
levels”, said Koos van Haasteren, Vice President SABIC in Europe. “Furthermore,
we have stronger ambitions in terms of revenue, market position and innovation.
Once the restructuring process has been completed, I am confident that SABIC
will be in an even stronger position to meet customer needs, support its
employees and contribute to the communities and environments within which we
operate.” Van Haasteren continued, “We remain committed to building a company
that provides our employees the opportunity to grow and develop.”.
Challenging Market Context
The European market is facing structural changes that are likely to set a new
course for future competitive challenges. Our industry continues to face slow
growth, as consumers’ spending on houses, cars and appliances and investments in
infrastructure projects are down. These developments have led to structurally
reduced demand and squeezed margins. At the same time, competition has
intensified from other regions, especially from the United States, which has the
advantage of shale gas development, and Asia, which has increased local
production capacity and consumption.
All of SABIC’s European assets have been reviewed and as a result SABIC plans to
close certain assets and reorganize the supply of products from these affected
assets through other plants.
The planned organization has been redesigned to be more focused and efficient at
delivering to customers’ needs at the highest environmental, health and safety
standards. It is expected that a reduction of
approximately 1,050 positions will take place across Europe, including
1/3 contracting staff and 2/3 SABIC employees.
These changes will enable SABIC to continue to deliver Chemistry that matters to
its customers and all its stakeholders.
The company said it had started consultations
with the relevant works councils and trades unions on the planned restructuring.
A company source said
two smaller polypropylene lines in Gelsenkirchen, Germany, including PP 2.3 and
PP 2.4, would be closed, while another line would be consolidated. SABIC
operates two gas-phase PP plants at Gelsenkirchen, with a capacity to produce
200,000 metric tons/year and 330,000 mt/year of PP resins, respectively. The
first plant uses Unipol PP technology, while the second uses Amoco technology.
At Bergen op Zoom, the Netherlands, SABIC will close a small asset operated by
SABIC Innovative Plastics, the company source said. The asset is used to
manufacture the raw material for one of SABIC's brands, Noryl.
This raw material is used to make polyphenylene ether (PPO) resins, which are
used as an additive or building block in a variety of thermoplastics used in the
insulation, cable and automotive sectors, among others. The production of this
raw material will be moved to the U.S., where the company intends to expand its
capacity, the source said. The source did not give the capacity of this unit or
the expansion plans in the U.S.
"All of SABIC's European assets have been reviewed and as a result SABIC
plans to close certain assets and reorganize the supply of products from these
affected assets through other plants," the company statement said. It attributed
the restructuring to the structural changes in Europe. The source did not give
details of the use of the PP resins coming from these two lines.
Compact, solution **
Huls, slurry *
Unipol, gas *
The company said two
older polypropylene (PP) lines in Gelsenkirchen have been earmarked for
closure, while a polyphenylene ether (PPO) asset in
Bergen op Zoom (of
SABIC Innovative Plastics) will be shut down.
SABIC said business from the PPO asset would be transferred to its site in
Selkirk, NY (of
SABIC Innovative Plastics).
Business from the two units in Gelsenkirchen will be transferred to another PP
facility at the same site, the company added.
SABIC also confirmed jobs will be cut in Raamsdonkveer, Geleen, Bergen op Zoom
and Sittard in the Netherlands, Teesside in the UK, Cartagena, Spain and in
The restructuring programme is expected to be completed by the end of 2014,
however SABIC will start implementing the changes as soon as possible.
“We have started the consultation process with the respective works councils and
employee representatives this week. The timing of the outcome of this
consultation process may differ per location but we are hoping to provide
clarity as from mid-July,” SABIC said.
Around two thirds of the planned job cuts across Europe will involve SABIC
employees. The remainder of the cuts will come from contracting staff. SABIC
said the job cuts will take place across all business units, operations and
staff functions. Information about cuts at a departmental or individual level
are subject to the consultation process, it added.
The company did not disclose the cost of the restructuring.
On Thursday, SABIC announced a planned restructuring programme designed to
strengthen its European businesses. The company said at the time the planned
organisation has been redesigned “to be more focused and efficient at delivering
to customers’ needs at the highest environmental, health and safety standards.”
SABIC added that lower consumer spending in the European market has led to
slower growth, which has “structurally reduced demand and squeezed margins”,
while competition has intensified from other regions, especially from the US and
Saudi chemical giant to invest
nearly £1bn in Teesside plant
Saudi Arabian manufacturing and
chemicals giant Sabic is to invest almost £1bn at its Teesside plant.
The company, one of the world's
largest petrochemical manufacturers, told Reuters the cash injection was part of
its plans to reduce its carbon footprint by up to 60%
Boris Johnson said the investment was a "huge vote of confidence" in the UK's
The prime minister said the deal would create and safeguard 1,000 jobs.
Sabic said the investment would include strengthening operations at Teesside and
making its site "one of the world's lowest carbon-emitting crackers".
A cracker is a facility that processes and heats hydrocarbons to make building
blocks for all sorts of products.
The company produces chemicals, fertilisers, plastics and metals at its plant
in Wilton, near Redcar, but also has storages and logistics facilities in
North Tees and Teesport.
The announcement comes as Britain is set to host the COP26 climate talks in
Glasgow in November.
The summit is seen as crucial if climate change is to be brought under control.
For this conference, 200 countries are being asked for their plans to cut
emissions by 2030.
SABIC Europe とその前身
SABIC’s Teesside site has manufacturing,
storage and logistics facilities spread over three sites, at Wilton
International, North Tees and Teesport. The import and export facilities
make the Teesside site an integral part of SABIC’s European-manufacturing
The Olefins 6 facility at Wilton has
been closed for over a year and the investment will secure its future,
creating and protect 1,000 jobs in the process.
The firm announced on Wednesday that
investment in the Teesside site is one of a series of actions the
company is taking as part of its carbon neutrality strategy.
The first phase will reduce its
carbon footprint by up to 60 per cent, making it one of the world’s
lowest carbon-emitting crackers.
In the second phase, a carbon
neutrality feasibility study will be undertaken with
the use of hydrogen as a fuel source.
International site is one of the UK’s leading process
manufacturing sites based on the outskirts of Redcar, in the North
East of England.
site boasts a number of major international companies in a variety
of fields including energy generation, recycled plastic, biofuel
products as well as the manufacture of chemicals and petrochemicals.
SABIC own several assets based
here, which manufacture some of the major chemicals for our company.
The Olefins 6 plant, also known
as the ‘cracker’, was commissioned by ICI in 1979 as a liquid
naphtha cracker and is now the second largest cracker in Europe. The
plant also includes the Gasoline Treatment Unit and Butadiene 3
plant, in addition to the main cracker unit.
The world-scale cracker produces
ethylene, propylene and butadiene, which are the chemical buildi
blocks for items that we use in our everyday lives such as car
interiors, tyres, electrical goods, clothing and detergents.
The cracker was recently modified
to handle both liquid and gas feedstock, including ethane, naphtha,
propane and butane, making it one of the most flexible crackers in
System 18, LDPE
Commissioned in October 2009, the
System 18, LDPE plant is the largest single stream tubular
low-density polyethylene (LDPE) plant in the world. The plant
processes approximately half of the ethylene output from SABIC’s
Olefins 6 ‘Cracker’. The technology for System 18 is licensed from
Approximately fifteen grades of
LDPE, in the form of polymer pellets, are produced at System 18,
which can be tailored to our customers’ requirements. The pellets
are stored in the Logistics facility adjacent to our plant until
they are ready to be shipped to our customers. Our pellets are used
to manufacture products that are commonly found in everyday life,
such as packaging for food and agriculture and in medical
Wilton Ethylene Control (WEC)
forms the hub of the UK ethylene system, moving product from the
Olefins 6 plant to customers around the UK; including the System 18
plant, North Tees Liquefaction, the Ineos Grangemouth site and the
Inovyn site at Runcorn, via cross-country pipelines (CCPL).
Our Central Control facility,
manages the feedstock for the Butadiene Plant and products from
Olefins 6 and the Gasoline Treatment Unit.
Finally, our Teesport operation
is responsible for the safe and reliable import and export of all
feedstocks and products via our two jetties on the River Tees.
The North Tees Logistics (NTL) area
supports the major feedstock and product import, export, storage and
distribution logistics for SABIC on Teesside. Our operations cover an
extensive land area, which includes storage facilities, operation of
three jetties on the River Tees, an ethylene liquefaction terminal,
brine extraction and an ethane import terminal.
The storage and distribution of all Olefins
6 feedstocks, naphtha, ethane, propane and butane, is managed by NTL; as
well as the export of the two main products from Olefins 6, ethylene and
propylene, to customers outside the UK mainland by ship. NTL also
operate an Effluent Treatment Plant which processes all water on SABIC’s
North Tees site.
SABIC’s UK headquarters is based in The Wilton Centre,
which is adjacent to the Wilton International Site.
Staff from our UK
manufacturing operations team are based in the offices
here, working in disciplines such as HR, procurement,
EHSS, finance, legal, communications, IT and
administration along with employees from our European
and Global teams and our Senior Management Team.