Company News

Downstream production also affected
While American companies Sunoco and Dow Chemical will close down some of their plants, PolyOne, Momentive Performance Materials and Nova Chemicals are reducing their workforce.

After having done an extensive review, Sunoco says it will close down its 180,000 tonnes/year capacity PP facility in Bayport, Texas, by 30 April this year. Sunoco has three other PP facilities in the US that will assume a portion of Bayport's production.

In other news, Dow Chemical is closing its Styrofoam (PS) production line in the US by the end of this year. The American company had planned to convert the foam line to a new blowing agent technology but has postponed doing that that in view of the dismal building and construction market. Dow will still have seven Styrofoam production lines in the US after the closure of the plant and its other units will continue to produce PS resin and styrene butadiene latex at the site.

Compounding firm PolyOne is set to axe 370 jobs that represent 8% of its global workforce. The company will also close its PVC compounding plant in Ontario by the first quarter of 2009 and will implement shorter working weeks for an additional 100 to 300 employees. Of the 370 job cuts, 180 will be from the US. The company says this will result in US$25-30 million in pre-tax savings in 2009 and US$40 million a year after that. Last year, PolyOne announced that it planned to close eight facilities and eliminate 150 jobs.

Momentive Performance Materials has announced restructuring and cost-saving actions in response to the downturn. Beginning this year, it has started eliminating 250 full-time positions around the globe or 9% of its workforce. Momentive said it expects to take restructuring charges of approximately US$15 million in the fourth quarter of 2008 and the first quarter of 2009 related to the reduction in force.

Nova Chemicals will reduce up to 400 full-time jobs and more than 200 contractor positions by the end of the second quarter of the year. The full-time jobs represent about 15% of its total workforce.