Proposed Consolidation of Arkema's Vinyl Products business segment
Arkema confirms its wish to remain a leading European player in the activities covered by its Vinyl Products business segment. Arkema's senior management confirmed at a Central Works Council meeting that the objective of the proposed consolidation plan was to restore the competitiveness of its Vinyl Products business segment and its ability to ride out the economic climate.
Vital for the future of Arkema's Vinyl Products activities, the proposed plan entails no site closure and no redundancies, and would be backed by a Euros 300 M capital expenditure programme over 5 years, by focusing on developing the most efficient plants, shutting down the structurally loss-making plants, pursuing the safety and environmental protection drive, and consolidating initiatives which increase productivity.
Meanwhile, this draft plan would secure the long-term future of the Saint-Auban site through overall investments of Euros 35 M, by recentring the facility on its strong points (specialty PVC and trichloroethane 1,1,1), and by shutting down the activities making heavy losses (electrolysis, MCAA and VCM).
This plan would result in the loss of 548 jobs overall. Arkema is committed to making no personnel redundant. Arkema's senior management would therefore put in place major support resources to assist the personnel concerned (mobility plan to other Arkema and Total Group facilities, assistance with departure for personal projects, voluntary early retirement packages fully funded by the Company potentially concerning 318 people), as well as a plan to aid the Moyenne Durance regional economy aimed at creating 400 jobs over 4 years.
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