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Chemical closures could have 'domino effect'

Union leaders have voiced dismay at plans to close two chemical plants on Teesside with the loss of more than 200 jobs, warning of a “devastating” effect on local communities.

The jobs will be axed on Teesside after the Dow Chemical Company said it planned to shut its ethylene oxide and glycol (EOEG) production facility at Wilton, while Croda International said it was being forced to close its neighbouring plant, which uses raw materials supplied by Dow.

Unite warned that the closures, due by the end of January 2010, could have a “ripple” effect across the chemical industry, putting thousands of jobs at risk.

National officer Phil McNulty said the Wilton plant should not be shut, adding: “It cannot be stressed enough that this plant stands at the heart of a strategic business for the UK.

“This plant doesn’t just provide skilled work for hundreds of people in Teesside where decent jobs are becoming scarce, but the product it produces is also vital to the enduring success of the UK chemical sector.”

Regional backing

Regional development agency One North East, the North East Process Industry Cluster (NEPIC) and Tees Valley Regeneration vowed to redouble efforts to find inward investors for Wilton and other key sites on Teesside.

Stan Higgins, CEO of NEPIC, said: “This is a difficult time for the employees affected by this decision and our thoughts are with them today. We will be helping them to find new employment over the coming months alongside our colleagues from the Public sector.

Ian Williams, Director of Business and Industry at One North East, said: “These announcements are very disappointing and we will be working with our partners to support affected staff.

“Despite the tough economic conditions facing the sector and wider industry, the process industries remain a very significant contributor not just to the regional economy but to the UK as a whole.”

‘Powerhouse’

Redcar MP Vera Baird said the decision to shut the were “a very serious blow”.

She said: “The closure of Dow, which is causing the closure of Croda, with other potential knock-on effects is a real retrograde step too in a number of ways for British industry and for our balance of payments.

“I refuse to give up hope. Wilton remains a powerhouse of industry and has a great future despite this.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .