Dow Reveals Plans to Close Grangemouth Additives Plant
Just as workers at Grangemouth thought the worst was over, the mammoth petrochemical complex on Scotland's river Forth has been dealt another low blow. Days before Christmas, Dow Chemical announced plans to close its plant for the plastics additive methyl methacrylate butadiene styrene (MBS), with the loss of some 66 jobs.
At the end of October, employees of the Ineos Grangemouth complex were outmanoeuvred by chairman Jim Ratcliffe and forced to make concessions on pay and working conditions. Subsequently, in the interest of preserving jobs, the UK and Scottish governments pledged financial aid to the former British company for a €300 million terminal to import shale gas-derived ethane to the site whose refinery supplies much of Scotland.
Dow said consultations with the Grangemouth employees will begin in January. It has not disclosed a timetable for the shutdown, however. In announcing the plans, the US group cited "ongoing economic uncertainty, which has resulted in a significant deterioration of demand." It added that the decision to close was made "after a "comprehensive review" of its plastics additives business strategy."
Earlier in 2013, Dow said it would divest the plastics additives business, but in September withdrew the plans after failing to find a buyer willing to pay the asking price. The Grangemouth facility was one of seven worldwide production facilities the group had put up for sale.
