Arkema proposes reorganization of Saint-Auban industrial site
Arkema France presented to an extraordinary meeting of the Central Works Council a project for the proposed reorganization of the Saint-Auban site (France / Alpes de Haute-Provence) entailing the shutdown of vinyl chloride / vinyl acetate copolymer production and a recentering on the site’s other activities by adapting its organization to its new industrial scope.
Despite the implementation of the Vinyl Products consolidation plan presented in 2005, the economic situation of the Saint-Auban site remains heavily impacted by the losses incurred by its vinyl chloride / vinyl acetate copolymer operations. Since 2006, this activity has been suffering from growing overcapacity in Western Europe related to a structural deterioration of its end-markets, in particular rigid packaging film and pharmaceutical blister packaging which account for almost half its outlets.
The project entails the shutdown of copolymer production and the industrial refocusing of the site on the manufacture of PVC Paste, chlorine for the production of caustic soda and hydrochloric acid (anhydrous, solution and liquefied) from the chlorinated waste recycling plant. It also entails a thorough reorganization of the site intended to reduce its costs significantly through rationalizing production, streamlining the organization, and pooling a number of functions with other Arkema sites within the Provence-Alpes-Côte d'Azur (“PACA”) region.
The implementation of this plan would entail the loss of 88 positions. Copolymer production would cease on completion of the mandatory information and consultation procedure involving the trade unions, and the site’s new organization would come into effect on January 1st 2010. Arkema is committed to offering each employee affected by the loss of their position the opportunity to transfer to another Arkema manufacturing site within the PACA region. This commitment would also include assistance with identifying external redeployment solutions.
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