Citing reasons of weak demand, Netherland-based synthetic rubber producer Arlanxeo Holding has announced that it intends to permanently close its plant at Port Jerome, France, where it produces polybutadiene rubber (PBR) and styrene butadiene rubber (SBR).
According to Arlanxeo CEO Stephen Van Santbrink, the European chemical industry has continued to face persistent weak demand and declining competitiveness driven by rising costs, unbalanced global markets, and increased regulatory pressure.
He added, “These conditions have generated a significant burden on the sector across the regional value chain. Arlanxeo has not been an exception to these challenges. The Port Jerome site has remained in a structurally loss-making position.”
Santbrink said that despite “numerous improvement efforts,” the company does not foresee a “viable path to a sustained structural improvement.”
“We recognise the impact a potential closure may have on our employees, and we regret the need to consider these steps. We will continue to treat all employees with respect and in the event of a decision to cease operations at the site, we will do our utmost to assist with finding alternative solutions,” he furthered.
An information and consultation period has been launched with the Works Council in Port Jerome, with a final decision regarding the projected closure to be taken.
Arlanxeo is a wholly owned subsidiary of Saudi Aramco and a consumer of butadiene. Arlanxeo produces and markets high-performance rubbers with a presence at more than 10 production sites in eight countries and four R&D locations around the world.