Right chemistry for new jobs

Mar 4 2009 by Peter McCusker, The Journal

DESPITE the recession, a £200m chemical plant is due to open on Teesside and the process industry says it still needs to recruit 16,000 skilled workers over the next 10 years. Peter McCusker reports.

THE new Sabic polyethylene plant, which has created 120 jobs on Teesside, will come on stream in April and, providing it with raw material, the neighbouring “Cracker” plant will re-start after an eight-week maintenance break.

Saudi Arabian chemical giant Sabic, is confident of the new plant’s long-term viability producing polyethylene for use in food packaging and in the agricultural sector.

The creation of 120 jobs is a timely boost for Teesside’s chemical sector after Sabic closed two plants last year with the loss of 180 staff.

But the company’s overall strength is good news for its UK petrochemicals business, which has manufacturing assets at both the Wilton International and North Tees chemical complexes, directly employing more than 800 staff.

Sabic manufactures on a global scale in more than 45 countries in the Americas, Europe and Asia Pacific. Its overall production has increased from 27 million metric tons in 2001 to 55 million metric tons in 2007.

The company has pledged its long-term commitment to Teesside, spending £35m overhauling the Olefins 6 plant, known as The Cracker.

The Cracker is crucial to the operation of Wilton as it produces hydrocarbons which are used in the manufacture of many plastics goods elsewhere on the site.

It was shut down earlier this year with the company stating the closure was due to the lack of demand caused by the economic downturn.

Bill Perfitt, a spokesman for Sabic, said: “We are still operating in a difficult environment where demand is sluggish, but by the end of March or early April we expect the Cracker plant and the new polyethylene plant to start production.”

The dramatic declines in new housebuilding and new car sales have undoubtedly taken their toll on some of Teesside’s chemical plants.

But experts say Teesside and the rest of the region’s chemical pharmaceutical and biotechnology companies are putting themselves in good shape for the upturn.