INEOS ChlorVinyls Announces Outcome of Internal Asset Review

INEOS ChlorVinyls has today announced the outcome of an internal asset review in light of the impact of the prolonged economic downturn on European market demand.

As demand for PVC in particular continues to be very weak, the Company needs to address its current over capacity in chlorine, VCM and PVC. As a result, INEOS ChlorVinyls has decided to discontinue production from three of its plants.
The Company will focus all UK PVC production at its Newton Aycliffe Site, which will facilitate closure of its small scale PVC unit at Runcorn Site. Also at Runcorn Site, the Company will reconfigure its VCM plant to produce EDC intermediate for internal use.

In Germany, the Company will bring forward the closure of its mercury chlorine cellroom at Wilhelmshaven Site.
The Company expects to achieve these changes without involuntary redundancies and employees and their representatives will be kept fully informed as matters progress.

Comments Chris Tane, CEO: "We are taking these measures in light of current and expected economic conditions impacting demand across Europe. We are confident these measures, along with other ongoing improvement initiatives, will help secure our business in the long term by improving profitability and cashflow during these very difficult times."

Source: INEOS ChlorVinyls