13 January 2009

INEOS CHLORVINYLS ANNOUNCES CLOSURE OF THREE PLANTS AT RUNCORN SITE, CHESHIRE (UK)

INEOS ChlorVinyls has today announced the planned closure of three of its plants at Runcorn Site, Cheshire (UK) in response to the continued and prolonged global economic downturn and the resulting impact on demand.

The Company has announced its intention to focus on the manufacture of products where its market position is strongest, and where there is sufficient return on its ongoing investment at the Site.  The Company will cease the manufacture of products where market positions are much weaker, where demand is shrinking or where there is little or no likelihood of improvement in the longer term. 

As a result the Company intends to close its Per/Tri and ACS plants at Runcorn Site by the end of Q1 2009 latest.  The Company also intends to close one of its two remaining mercury chlorine cellrooms at the Site by increasing output from its new membrane chlorine cellroom, constructed as part of a recent site modernisation programme.

The Company will aim to deliver the plant closures without the loss of any permanent INEOS employees, as it is expected that staff will be reassigned to the continuing operations. 

Comments Chris Tane, CEO INEOS ChlorVinyls: “As a bulk commodity chemicals manufacturer we compete almost entirely on price, which means it is essential we focus on products that have a strong market position if we are to secure the long term sustainability of Runcorn Site. 

“This has been brought into very sharp focus during the recent economic downturn where we have seen a marked deterioration in certain sectors resulting in rapid decline in demand.  Streamlining our output will allow us to concentrate on products that will deliver long term growth and value to the business.”

The Company will work with customers impacted by the plant closures during their transition to alternative supplies.

The Company continues to progress other initiatives to improve the competitiveness of Runcorn Site.  This includes the construction of a £300 million Energy from Waste CHP plant, which is expected to deliver up to 20% of the Site’s energy needs by 2012, allowing the Company to reduce its dependence on expensive gas to power its plants.

The Company’s other UK operations at Barry (Wales) and Newton Aycliffe (North East England) are not impacted by this announcement.

ENDS

For more information please contact the INEOS ChlorVinyls Press Office:

Craig Welsh
Telephone: + 44 (0) 1928 511528
Fax: +44 (0) 1928 569459
Email: craig.welsh@ineos.com 

Notes to Editors

  1. The Per/Tri plant at Runcorn Site produces the chlorinated solvents perchloroethylene and trichloroethylene.  Perchloroethylene is used in a variety of applications including dry cleaning, metal cleaning, the production of refrigerants, and in the oil industry.  Trichloroethylene is also used for metal cleaning, and finds other applications in the engineering industry, and in the production of CFC replacements.
  2. The ACS plant at Runcorn Site produces anhydrous caustic soda, which is used in the manufacture of detergents and cleaners; for industrial and potable water treatment; in the production of animal feeds and agricultural products, and in the food industry.
  3. INEOS ChlorVinyls has invested around £390 million at Runcorn Site in recent years.  This included the construction of a major new membrane chlorine cellroom, a new boiler plant, a centralised control room, and other plant uprates.
  4. INEOS ChlorVinyls employs around 1,100 permanent employees at Runcorn Site.