SABIC Europe

SABIC ACQUIRES DSM's POLYOLEFINS 　　　Capacity

Aiming For Number One

SABIC Europe starts production of bio - ETBE in the Netherlands

SABIC Europe Cracker Project in Geleen on hold

SABIC Europe signs contract to build new HDPE plant in Gelsenkirchen

SABIC opens new high density polyethylene plant in Germany

SABIC Europe announces plans to streamline its aromatics operations

Start date nears at £200m SABIC plant at Wilton

SABIC Announces Restructuring Plans for its European Operations

http://www.sabic-europe.com/europe/_en/index.pl

SABIC Europe is a 100 percent affiliate of SABIC, the largest petrochemical player in the Middle East and the number 4 global player in polyolefins worldwide, producing more than 5 million tons of polyethylene and polypropylene per year.

In Europe SABIC is a major polymer producer. The European SABIC business also harbors the sales organization for all SABIC products manufactured elsewhere in the world. SABIC sales in Europe amount to almost 6 million tons of polymers, base chemicals and intermediates.

The European head office is located in Sittard (The Netherlands) and integrated world-scale production facilities are based in Geleen (The Netherlands) and Gelsenkirchen (Germany) with a total yearly production of 4.0 million tons of petrochemicals. In Europe, apart from polyethylenes and polypropylenes, SABIC also produces chemical products like benzene, acetylene and MBTE.

Geleen is also the hometown of a state-of-the-art R&D center and a highly qualified Technical Marketing team for expert technical support. Sales offices operate from The Netherlands, the United Kingdom, France, Germany, Italy, Spain, Denmark, Poland, Czech Republic and Turkey.

The European branch forms part of SABIC, the largest Middle East petrochemicals player and the number 4 player in polyolefins worldwide, producing more than 5 million tons of polyethylene and polypropylene per year. Apart from this SABIC is also active in chemicals, fertilizers and metals.

Polyethylenes
SABIC markets over 2 million tons of HDPE, LDPE and LLDPE in Europe. The product range is fit to serve all major PE markets, with extrusion, blow moulding, injection moulding and extrusion coating as the main processing techniques. Applications are flexible packaging, such as stretch film, shrink film, food packaging, carrier bags and photo-coating, and rigid applications such as bottles & cans, pipes, sheets, crates & boxes and dustbins. Around 1.3 million tons of the total volume marketed is produced in Europe.

Polypropylenes
SABIC markets 1.2 million tons of polypropylene as well as a wide range of compounds based on this polymer. Most of these materials are produced in our European production facilities. The product range is fit to serve all major PP markets with injection moulding and extrusion as most important processing techniques. Applications are flexible and rigid packaging, fibers, housewares & appliances, caps & closures, automotive parts (e.g. bumper systems) and pipes.

Melamine, polyvinylchloride, polyester and polystyrene
Melamine, polyvinylchloride, polyester and polystyrene products are manufactured by SABIC affiliates in Saudi Arabia: National Plastics Company (Ibn Hayyan), Arabian Petrochemical Company (Petrokemya), Arabian Industrial Fibers Company (Ibn Rushd) and Saudi Arabian Fertilizer Company (SAFCO).
These polymers are used in applications such as components in paints, adhesives and powders (melamine), wall covering, laminated fabrics, cell foam and pipes (PVC), fibers, yarns and bottles for drinks (polyester) and building & roof insulation, packaging for household appliances and containers (polystyrene).

SABIC’s polyolefins position in Europe (production in Europe in kt)

Chemical Engineering News 　　　December 7, 2005

Aiming For Number One
http://pubs.acs.org/cen/news/83/i50/8350SABIC.html

Since Saudi Basic Industries Corp. (SABIC) acquired DSM's petrochemical operations in mid-2002, it has been busy coming to grips with this European-based petrochemical business. Now, its European management team has laid out how it intends to build its business in the region.

And the answer is clear: SABIC Europe is aiming to be one of the top two marketers of polyolefins in Europe.

The company currently is the fourth largest seller of polyolefins in Europe. It also occupies the same position worldwide, selling roughly 4.9 million tons of polyolefins per year, behind ExxonMobil at roughly 6.5 million metric tons, Dow Chemical at about 7.5 million metric tons, and Basell at nearly 9.0 million metric tons.

SABIC is now finalizing plans for the big project it will rely on to fulfill its European goal: its fifth ethylene cracker, envisaged for its site in Geleen, the Netherlands. That cracker and a series of new plants and expansions are part of the company's Europe 1 project to expand Geleen and its site in Gelsenkirchen, Germany.

Between Geleen and Gelsenkirchen, SABIC Europe has a total polyethylene capacity of 1.48 million metric tons per year - 47% of SABIC's global polyethylene capacity - and 1.09 million metric tons of polypropylene, 65% of total SABIC polypropylene capacity. The feedstock at Geleen is from the company's own naphtha crackers - crackers No. 3 and 4 are its current workhorses, supplying a total of 1.25 million metric tons of ethylene and 675,000 metric tons of propylene. Production in Gelsenkirchen depends upon feedstock secured under a long-term contract from the neighboring BP cracker.

The Europe 1 project - budgeted at nearly $1.8 billion - is set to start up in 2009, says Frans Noteborn, chief executive officer of SABIC Europe.

The Europe 1 project will add another 400,000 metric tons of ethylene capacity to the company's European slate. But even more important, Noteborn says, the proposed cracker will be a “propylene machine” that will use metathesis technology to produce up to 620,000 metric tons of propylene. It will also make benzene and ethyl tert-butyl ether.

Looking five years ahead, “propylene will not be tight - it will be very tight,” Kostering says. The industry is predicting a global demand increase over that time of 14 million metric tons of propylene, he points out. But current industry plans call for only 5 million more metric tons from new crackers and cracker expansions, and another 4 million metric tons through propane dehydrogenation and metathesis. Projected cracker propylene output is modest because, unlike the proposed Geleen project, most new crackers are based on ethane and don’t turn out propylene.


The company acknowledges the two other announced European ethylene additions - Ineos’ plan for an 800,000-metric-ton facility in Wilhelmshaven, Germany, by 2008 or 2009; and BASF's 300,000-metric-ton expansion in Antwerp by 2007. But Noteborn and his team are not worried by the competitive threat.

June 9, 2006　SABIC Europe

SABIC Europe Cracker Project in Geleen on hold

SABIC Europe has decided to put the development of the cracker project on the Geleen-site (the Netherlands) on hold. The investment costs and financial risks are too high to realize a financially sound project on the Geleen site today.

“The main cause for the high investment costs is the current overstrained market situation in the global contracting and construction market due to the many investments projects in the oil, gas and energy market worldwide. “ explains Frans Noteborn, CEO of SABIC Europe.

SABIC remains committed to its strategy of growth for the important European market. To realize this strategy, all options such as the upgrading of the current asset base and supply from the global SABIC system to strengthen the existing portfolio will be reviewed in the coming months.

The investment would have seen the building of a third, 520,000 mt/year cracker at Geleen, and further polymer plants at Gelsenkirchen.

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2006/4/28　Global Insight Daily Analysis

Dutch Government Approves Installation of Third Cracker at SABIC Refinery

The Dutch government has cleared the way for refiner SABIC to build a third naphtha cracker at Geleen in the Netherlands, after resolving issues over fiscal regulations and emissions.
'The problems connected with the plant from the side of the government have now been resolved, and it is now up to SABIC whether to go ahead', a Ministry of Economic Affairs spokesperson told Platts.

Significance: Plans to build the 520,000-million-tpa cracker at Geleen had been held up by SABIC's concerns about carbon-dioxide emission payments before and after 2012, fiscal rulings and infrastructural issues. A decision on whether to proceed with 1.5-billion-euro (US$1.86-billion) expansion is now up to SABIC, which originally expected the cracker to start up in the first quarter of 2006. Late last year, SABIC said that the ongoing risk evaluation would last longer than expected. and approval was delayed for an unspecified period.

March 22, 2006 SABIC Europe

SABIC Europe starts production of bio - ETBE in the Netherlands

SABIC Europe announced today the start of production of bio - ETBE [ethyl-tertiary butyl ether] at its Geleen site in the Netherlands. First commercial deliveries to customers are expected at the beginning of April. This investment in Geleen enables SABIC to enter the bio-fuel market and is in support of the EU’s implementation of the European Bio-Fuels Directive within its member states. This plant is the first of its kind in the Netherlands.

SABIC’s ETBE production plant in Geleen, with an annual capacity of 140kt, converts bio-ethanol and iso-butylene into ETBE which is recognised as a valuable high octane gasoline blending component. ETBE in gasoline contributes to a better air quality by reducing emissions of, amongst others, carbon monoxide and volatile organic compounds.

July 31, 2006 SABIC Europe

SABIC Europe signs contract to build new HDPE plant in Gelsenkirchen

SABIC signed today a contract with the German contractor, Uhde, for the construction of a new bimodal HDPE (high density polyethylene) plant at its production site in Gelsenkirchen, Germany.

The new 250 kt/y plant will come on stream in Q4 2008 and will replace the current 100 kt/y PE plant in Gelsenkirchen. The investment in the new project, including the infrastructural improvements at the site, is around Euro 200 million.

“I am pleased that after more than two years of dedicated work, we have decided to start with the construction of the plant,” says Abdullah Bazid, Managing Director Chemicals & Intermediates. “The investment in the Gelsenkirchen site is a positive signal for the site to become even more competitive as against other petrochemical sites in Europe. We will be able to enhance our cost position in Europe and satisfy our customers.”

This investment is in line with SABIC’s growth strategy in Europe. Koos van Haasteren, Managing Director Polymers says: “This project will further strengthen SABIC’s leading position in the fast growing market for the bimodal pipe business.”

Gelsenkirchen site
The Gelsenkirchen production site - formerly Vestolen Hulsの子会社- was acquired in 1997. (* DSM acquired Vestolen in November 1997)
The site has since undergone continuous modernization and expansion. After completion of the new plant more than Euro 500 million has been invested in the Gelsenkirchen facilities. The production has gone up from 250 to 1100 kilo tons per year since 1998.

“A lot of effort has been successfully made in the past years to optimize the site. This investment will further strengthen Gelsenkirchen’s competitiveness,” says Jan van den Berg, Managing Director at Gelsenkirchen. “The investment of Euro 200 million will further secure the future of the site and will be a positive contribution to the regional economy of Nord-Rhein Westfalen.”

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2009/4/4

SABIC opens new high density polyethylene plant in Germany

SABIC's new High Density Polyethylene (HDPE) bi-modal slurry plant the LD6 in Gelsenkirchen, Germany is up and running and meets the high expectations. The first produced SABIC Vestolen A pipe grades are commercially available from now.

The SABIC Vestolen A family is well-known for its high quality; offering properties such as easy processability as well as excellent pipe performance with regards to reliability and safety. With the LD6 SABIC is ready for the future HDPE market: The LD6 secures future product supply, enables high-end product innovations and ensures a more environmental friendly production process.

SABIC's LD6 is equipped with a leading production technology that secures a reliable and high quality product supply. The new plant will cover a production of 250kt per annum.

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Vestolen
Huls AG inherited the polymer sector from the firms that succeeded I.G. Farbenindustrie AG - Bayer AG, BASF AG and Hoechst AG dye works. They were created from the demerger of I.G. Farben after 1945.
Via the mining company Hibernia AG, which held 25% of the shares in Huls, the company acquired the highly productive Ziegler patents which made possible non-pressurized, oil-based manufacture of polyethelene. In order to manufacture and market VESTOLEN, Hibernia AG and Huls AG entered into a joint venture, VESTOLEN GmbH, in the mid-1950s.

VESTOLEN GmbH was dissolved when Huls became the Chemicals Division of VEBA in 1979. Production and marketing were combined in one Huls business unit. In the course of a portfolio consolidation, the VESTOLEN product range was hived off again and in 1993 it was launched as the newly-founded VESTOLEN GmbH, which today belongs to SABIC (Saudi Arabian Basic Industries Corporation).

Capacity　　　　　　SABIC ACQUIRES DSM's POLYOLEFINS

DSM HYDROCARBONS B.V.
The heart of DSM’s European polyolefins business lies in the ethylene crackers that feed the polyethylene, polypropylene, and EP elastomers plants as well as other production facilities.

Two steam crackers with a combined ethylene capacity of ca. 2.8 billion pounds are situated in Geleen and operated by DSM Hydrocarbons.

Located in Geleen (The Netherlands), SABIC Europe operates two steam crackers capable of producing over 1,250,000 tonnes of ethylene and approximately 675,000 tonnes of propylene each year. It also operates advanced downstream plants for acetylene, MTBE, butadiene, benzene, gasoline components, styrene, C9 resinfeed, cracked distillate and carbon black feedstocks.

The Europe 1 project will add another 400,000 metric tons of ethylene capacity to the company's European slate. But even more important, Noteborn says, the proposed cracker will be a “propylene machine” that will use metathesis technology to produce up to 620,000 metric tons of propylene. It will also make benzene and ethyl tert-butyl ether. → on hold

Two other steam crackers, owned by Ruhr Oel, or ROG, a 50/50 joint venture between Veba Oel GmbH and Petroleos de Venezuela SA, supply ethylene and propylene to the polyethylene and polypropylene plants in Gelsenkirchen. The Gelsenkirchen crackers are connected to the Geleen site by the ARG ethylene pipeline.

Due to BP's acquisition of Veba Oel, Ruhr Oel is now operated jointly by Deutsche BP and the Venezuelan oil company PdVSA

As a large supplier of olefins in north-west Europe BP Refining & Petrochemicals has the operatorship of the petrochemicals plants in Gelsenkirchen and Münchsmünster, which are operated jointly by Deutsche BP and its partner, the Venezuelan oil company PdVSA. Supplies come predominantly from the oil-refining facilities of Ruhr Oel.
There are further petrochemicals plants at Erdoel-Raffinerie-Emsland (ERE) in Lingen, a 100% shareholding of Deutsche BP.
The total annual capacity of the petrochemicals plants amounts to 4.9 million tonnes. BP RP is the biggest supplier of ethylene in the merchant market. It is also market leader in sales of cyclohexane. In its core business of olefins BP RP will expand its market position by means of stategic expansion and increases in capacities.

DSM POLYETHYLENE
DSM Polyethylenes presently has a total capacity approaching 3.4 billion pounds, divided as follows:
(1) LDPE - 1,342 million pounds,
(2) HDPE - 1,100 million pounds, and
(3) LLDPE - 924 million pounds.
Included in the LLDPE numbers are the pounds of EXACT(R) octene-1 based plastomers produced by Dex-Plastomers V.O.F, the 50/50 joint venture with ExxonMobil.

Dex-Plastomers V.O.F

A 50 / 50 joint venture between DSM and ExxonMobil Chemical.

Established in 1996.

Two product families, Exact® Plastomers and Stamylex® octene linear polyethylenes.

120 kTpa solution PE capacity.

DSM's Compact® solution polymerisation process, which has a proven history of manufacturing high performance octene copolymers.

ExxonMobil Chemical's Exxpol® metallocene catalyst technology, allowing the production of Exact plastomers.

The Gelsenkirchen production site - formerly Vestolen - was acquired in 1997.
(* Towards the end of 1997, the Dutch company DSM bought Vestolen, the polyolefins business of Veba, Germany, giving DSM an additional 150,000 t pa HDPE and 200,000 t pa PP.)
The site has since undergone continuous modernization and expansion. After completion of the new plant more than Euro 500 million has been invested in the Gelsenkirchen facilities. The production has gone up from 250 to 1100 kilo tons per year since 1998.

The new bimodal HDPE 250 kt/y plant will come on stream in Q4 2008 and will replace the current 100 kt/y HDPE plant in Gelsenkirchen. The investment in the new project, including the infrastructural improvements at the site, is around Euro 200 million.

Exhibit 3 lists polyethylene and polypropylene plant locations and production technologies for DSM. The Vestolen acquisition in 1997 brought DSM 3 HDPE lines each having a capacity of 110 million pounds per year. Since then DSM has expanded one of the lines by 50% to produce HDPEs with bimodal MWDs for use in pipe and sheet applications.
Geleen has 3 tubular reactors with a total capacity of 1,100 million pounds of LDPE within excess the largest line, which was installed in 1993, having a capacity of 440 million pounds. DSM produces a small amount of ultrahigh-molecular-weight polyethylene, UHMWPE, used primarily to produce its Dyneema（R) fibers. Dyneema is produced by DSM High Performance Fibers.

DSM POLYPROPYLENE
Total annual polypropylene production capacity is in excess of 2.4 billion pounds. DSM expanded its polypropylene capacity as well in 1997 when it picked up the Vestolen assets. Vestolen was a relatively small player in polypropylene that focused on niche applications such as film and fibers. The Vestolen polypropylene assets comprised a 220 million pound UNIPOL plant and 2 slurry lines, each having a capacity of 110 million pounds per year. The UNIPOL plant is slated for expansion to 330 million pounds per year. DSM has added a 517-million-pound plant at Geleen and a 750-million pound plant at Gelsenkirchen, using BP Amoco’s (horizontal) gas-phase process technology (Innovene PP) to produce polypropylene homopolymers and random copolymers. A third Innovene PP plant with a capacity of 660 million pounds is slated for construction at Geleen.

DSM Hydrocarbons Americas, Inc.
is a sales office whose primary business focus is on the sales and procurement of products for DSM Hydrocarbons in The Netherlands.

DSM Hydrocarbons Americas' geographical focus is the USA, Canada, Mexico, Venezuela and Colombia. For the Latin American market DSM Hydrocarbons Americas also sells caprolactam, cyclohexanone and specialty chemicals.

Exhibit 3
DSM - PE & PP Capacities, Western Europe, 2001→2005

*　 Dex-Plastomers V.O.F
** former Vestolen GmbH

***
　By 1st January 2004 SABIC Europe closed two out-dated polyethylene slurry lines in Gelsenkirchen (120 tpy). Production has been transferred to a modern gas phase plant on the same site and plants in Saudi Arabia, resulting in substantial cost savings.
　50+50+50 →50+50+75 →60+60+100 →0+0+100→（250+0）

Sep 17 2007 Evening Gazette

SABIC, planning 3rd PP plant in Europe

A Teeside, Wilton chemical company, which earlier this year said it may invest £200m locally in a new plant, has applied for planning permission for the project.

A spokesman for SABIC said while no decision had yet been made on whether the investment would come to Wilton, the move would help speed up development if the region is successful.

Paul Booth, president of SABIC UK Petrochemicals, revealed earlier this year that the company was hoping to secure construction of a new polypropylene plant at Wilton.

He said Teesside was one of two locations the company was looking at for a third European polypropylene plant. SABIC has now applied to Redcar and Cleveland Council for planning permission to build a new plant.

オランダのGeleen工場にエチレン、HDPE、LDPE、LLDPE、PPプラント、
ドイツのGelsenkirchen工場にHDPEとPPプラントをもつ。
エチレン能力は125万トン、ＰＥは148万トン、PPは109.5万トン。

The company is currently building a £200m polyethylene plant at Wilton.

July 16, 2008　SABIC Europe

SABIC Europe announces plans to streamline its aromatics operations

SABIC Europe today announced plans to re-structure its Aromatics operations based on Teesside, UK following a wide-ranging review of the long-term viability of the business.

The plans involve closure of the Aromatics 2 unit at the SABIC UK Petrochemicals North Tees Site near Seal Sands and the Paraxylene plant at the Wilton Site near Redcar. The plans also include an upgrade of the remaining Aromatics 1 plant at North Tees.

"On Teesside, SABIC UK Petrochemicals remains fully committed to its Olefins Cracker operations at Wilton and Cyclohexane production at North Tees. The current construction of the new world scale Low Density Polyethylene (LDPE) plant and a possible upgrading of the Aromatics 1 plant are important factors in helping to underpin this." concludes Hughes. In addition, SABIC Europe continues to operate its ongoing Aromatics business in the Netherlands.

Aug 21 2009

Start date nears at £200m SABIC plant at Wilton

A NEW multi-million-pound chemical plant on Teesside could come on stream within weeks.

The £200m Low Density Polyethylene (LDPE) facility is being developed by SABIC at Wilton.

Today the company said it hoped to bring the plant on stream during September.

The facility will create around 120 permanent jobs and help underpin the future of the company’s Cracker facility at Wilton.

A spokesman said: “The LDPE is nearing completion.

“Commissioning is well advanced and we hope to be able to bring the plant on stream during September.”

When the new LDPE plant reaches full production of well in excess of 400,000 tonnes per annum, it will make it the biggest plant of its type in the world.

The spokesman added: “We hope to be running at full capacity during 2010.

“We hope the plant will provide a boost for Sabic and the industry in general.”

Plans for the £200m plant were originally announced in 2004 when industrial giant Huntsman said it wanted to build the world’s largest polyethylene plant at the Wilton International site.

In 2006 Huntsman signed a £372m deal with SABIC for the sale of a major part of its Teesside operations.

The sale comprised Huntsman’s petrochemicals assets at Wilton - the cracker and paraxylene plants and the £200m polyethylene plant, and the aromatics complex at North Tees.

The new plant reached a major milestone on June 22 when ethylene feedstock was introduced to the complex for the first time.

April 19, 2013 SABIC Europe

SABIC Announces Restructuring Plans for its European Operations

SABIC today announced a restructuring program in Europe designed to strengthen its European businesses for the competitive challenges ahead, whilst maintaining the highest environmental, health and safety standards.
Following a full review of its European business, SABIC will restructure its European assets and organizational footprint. The planned restructuring includes the shutdown of certain assets and a net reduction of approximately 1,050 positions, while there will also be continued investments in plant improvements, new technologies and innovation. SABIC has initiated consultations with the relevant Works Councils and trade unions regarding the planned restructuring.

Strategic Overview
“Our strategy in Europe is to be the preferred leader in chemicals by delivering ‘Chemistry that matters’™ demonstrating excellent performance in environment, health and safety, cost competitiveness, customer value and sustainable profit levels”, said Koos van Haasteren, Vice President SABIC in Europe. “Furthermore, we have stronger ambitions in terms of revenue, market position and innovation. Once the restructuring process has been completed, I am confident that SABIC will be in an even stronger position to meet customer needs, support its employees and contribute to the communities and environments within which we operate.” Van Haasteren continued, “We remain committed to building a company that provides our employees the opportunity to grow and develop.”.

Challenging Market Context
The European market is facing structural changes that are likely to set a new course for future competitive challenges. Our industry continues to face slow growth, as consumers’ spending on houses, cars and appliances and investments in infrastructure projects are down. These developments have led to structurally reduced demand and squeezed margins. At the same time, competition has intensified from other regions, especially from the United States, which has the advantage of shale gas development, and Asia, which has increased local production capacity and consumption.

Organizational changes
All of SABIC’s European assets have been reviewed and as a result SABIC plans to close certain assets and reorganize the supply of products from these affected assets through other plants.

The planned organization has been redesigned to be more focused and efficient at delivering to customers’ needs at the highest environmental, health and safety standards. It is expected that a reduction of approximately 1,050 positions will take place across Europe, including 1/3 contracting staff and 2/3 SABIC employees.

These changes will enable SABIC to continue to deliver Chemistry that matters to its customers and all its stakeholders.

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Rubberworld

The company said it had started consultations with the relevant works councils and trades unions on the planned restructuring.

A company source said two smaller polypropylene lines in Gelsenkirchen, Germany, including PP 2.3 and PP 2.4, would be closed, while another line would be consolidated. SABIC operates two gas-phase PP plants at Gelsenkirchen, with a capacity to produce 200,000 metric tons/year and 330,000 mt/year of PP resins, respectively. The first plant uses Unipol PP technology, while the second uses Amoco technology.
At Bergen op Zoom, the Netherlands, SABIC will close a small asset operated by SABIC Innovative Plastics, the company source said. The asset is used to manufacture the raw material for one of SABIC's brands, Noryl. This raw material is used to make polyphenylene ether (PPO) resins, which are used as an additive or building block in a variety of thermoplastics used in the insulation, cable and automotive sectors, among others. The production of this raw material will be moved to the U.S., where the company intends to expand its capacity, the source said. The source did not give the capacity of this unit or the expansion plans in the U.S.
 "All of SABIC's European assets have been reviewed and as a result SABIC plans to close certain assets and reorganize the supply of products from these affected assets through other plants," the company statement said. It attributed the restructuring to the structural changes in Europe. The source did not give details of the use of the PP resins coming from these two lines.

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ICIS

The company said two older polypropylene (PP) lines in Gelsenkirchen have been earmarked for closure, while a polyphenylene ether (PPO) asset in Bergen op Zoom  (of SABIC Innovative Plastics) will be shut down.
SABIC said business from the PPO asset would be transferred to its site in Selkirk, NY (of SABIC Innovative Plastics).
Business from the two units in Gelsenkirchen will be transferred to another PP facility at the same site, the company added.
SABIC also confirmed jobs will be cut in Raamsdonkveer, Geleen, Bergen op Zoom and Sittard in the Netherlands, Teesside in the UK, Cartagena, Spain and in Gelsenkirchen.
The restructuring programme is expected to be completed by the end of 2014, however SABIC will start implementing the changes as soon as possible.
“We have started the consultation process with the respective works councils and employee representatives this week. The timing of the outcome of this consultation process may differ per location but we are hoping to provide clarity as from mid-July,” SABIC said.
Around two thirds of the planned job cuts across Europe will involve SABIC employees. The remainder of the cuts will come from contracting staff. SABIC said the job cuts will take place across all business units, operations and staff functions. Information about cuts at a departmental or individual level are subject to the consultation process, it added.
The company did not disclose the cost of the restructuring.
On Thursday, SABIC announced a planned restructuring programme designed to strengthen its European businesses. The company said at the time the planned organisation has been redesigned “to be more focused and efficient at delivering to customers’ needs at the highest environmental, health and safety standards.”
SABIC added that lower consumer spending in the European market has led to slower growth, which has “structurally reduced demand and squeezed margins”, while competition has intensified from other regions, especially from the US and Asia.