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Boulby mine restructure: 350 jobs lost in East Cleveland

Over 350 jobs will be lost at the East Cleveland-based Boulby Potash Mine, as owners Industrial Chemicals Limited (ICL) confirmed the need to commence a restructuring process, as alluded to earlier this year to protect the company’s future.

ICL UK has begun consultation on circa 220 job losses amongst its employees. In addition there will be a reduction of 140 in contractor numbers.

ICL manufactures products based on specialty minerals used in agriculture. The restructuring stems from the reduction in the level of economically-feasible potash reserves at Boulby, which the company estimates will be depleted by 2018.

The restructuring will include a transition from producing potash at the mine to producing Polysulphate, a fertiliser containing four vital plant nutrients.

Peter Smith, Executive Vice President-Potash of ICL, stressed that the ‘restructuring’, although painful, is vital to secure the future of ICL UK as a viable business.

He said: “We understand that proposals for staffing reductions will cause concerns for employees and their families, as well as the wider community in East Cleveland. We have today begun a redundancy consultation exercise with the recognised trade unions.

“During that process we will examine how we can achieve the changes needed to ensure the company’s future with the least impact on staff. No decisions will be finalised until the consultation with the trade unions has been completed.

“Boulby has played a major part in the economy of the area for a long time and has supplied its products to customers across the world. The process we are now embarking upon, although difficult and challenging, is aimed at ensuring that it will continue to be a major force in the local community—and a supplier of world-class fertiliser products—for many years to come.”

Reaction

Tom Blenkinsop MP said: “My heart really goes out to our East Cleveland miners at Boulby. We must keep them and their families first and foremost. To be informed you may be losing your job is a devastating process to go through, and especially in the lead up to Christmas.

“There is never a good time to be given this news but we are fast approaching one of the most stressful parts of the year so I will be working with Unite and GMB trade unions and will support whatever John Chilton and his fellow union reps want to do going forward.

“This news compounds the crisis industry on Teesside is facing. Thousands of jobs have been lost in the past couple of months and the Government needs to seriously reassess how it will stop this terminal decline. I will also be seeking an urgent question in this matter on Monday morning in the House of Commons.”

Anna Turley MP said: “I am really saddened to hear about the 350 job losses announced earlier today at Boulby Potash. This is yet another blow to the community, who have already been subjected to thousands of job losses from the closure of SSI in Redcar in the last few weeks.

“My thoughts are with the miners and their families who have been affected by today’s announcement. My constituents can rest assured that I will work tirelessly to represent their best interests locally, and in Parliament. I will be supporting my colleague Tom Blenkinsop MP on Monday when he will be seeking an urgent question regarding the crisis the industry in Teesside is facing.”

The developments spell more bad news for Teesside’s manufacturing industry, as typified by the recent SSI closure, costing the region almost 2,000 jobs.

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