French chemical producer Arkema has begun consultation with employees of its fluorogas production at Zamarillo, Spain, about closing the facility, which produces HFC R32 and R143a fluorogases and blends.

Internal and external redeployment solutions are be sought for the 59 employees who would lose their jobs in the shutdown, proposed to take place by the end of 2014.

The company noted that the European fluorogas industry has been severely impacted for several years by a competitiveness gap with China and the US, as well as structural problems.

Also, Arkema said, European regulations requiring investments for additional compliance standards as of 2015 make it infeasible to keep the undersized and loss-making site open.