Chromium plant Elementis to close

Apr 30 2009 By The Journal

HOPES of keeping the UK's last chromium plant open have failed and the Teesside site’s 138 staff were yesterday told they would lose their jobs.

US-owned manufacturer Elementis had announced in February that it was looking to cut costs as its chromium sales fell and that its plant in Eaglescliffe in Stockton was less efficient than its American chromium sites.

The company, which employs 1,500 people at 30 sites in eight countries, also said that its US site did not face the same competition from Asia as its UK plant.

The company confirmed yesterday that it would shut the factory before the end of June and that it would axe all the workers. The company expects to see closure related costs of £14m-£28m over the next three years.

Union bosses, which mounted a campaign last month to save the plant claimed that it could pay its way and accused its American backers of protectionism.

At the time, Unite regional secretary Bob Bolam said the plant was strategically important for the European chemical industry.

The company saw its share price increase by 4% as a result of the announcement as investors welcomed the cost-cutting exercise.

A statement said that it would finalise the closure programme with employees and union representative and give more details in early August when it reports its interim results.

Stan Higgins, chief executive of the North East Process Industry Cluster, said that while "hard for the individuals involved" closure was inevitable.

He said the decline of Elementis and nylon processor Invista, which will also close by the end of the year, was emblematic of organic change in the process sector.While around 500 jobs would be lost with the combined closures of the plants, another 700 positions had been created across the region in the last year and he believes that staff would soon be able to find jobs.