Basell to cut 330 KT PP and 32 KT compounding capacity in Europe
"These steps are being taken after a careful review of all assets to assess their viability," said Robert Genin, president of Basell Europe Polypropylene. "We appreciate all the effort that has gone into trying to make the plants efficient and productive, but they have remained among our highest cost operations. By taking this action now Basell will improve its financial position and make a major contribution to reducing over-capacity in Europe."
At Wilton, all assets are affected. Two Novolen homopolymer lines with total capacity of 180 KT will be mothballed and a 32 KT PP compounding facility will be closed.
In Spain, a 90 KT slurry plant will be closed at the Tarragona West site and a 60 KT Novolen homopolymer plant at Tarragona East will be mothballed. The other plants in Tarragona are unaffected. At Tarragona East, Basell is constructing a new 225 KT Novolen PP plant that is due to be commissioned in 2002 and therefore the impact of the closures on employee numbers is expected to be minimal.
Approximately 160 employees at Wilton will be affected. "We will treat the employees affected by these actions with fairness and dignity," said Genin. "There will be some limited opportunities for redeployment within Basell and we will provide all employees with a comprehensive support and severance package including an outplacement service."
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