SABIC to cut 200 jobs in Germany
In spite of various measures taken to boost SABIC's production activities at Gelsenkirchen and the sale of the polyolefins produced there, the results of this SABIC site have remained unsatisfactory.
In order to obtain a sound business base, a clear improvement in productivity is to be achieved through full-capacity operation and reduction of the production costs. Optimization of the organization will result in some 150 of 540 jobs being cut in the next two years. An additional 50 jobs will disappear in 2008, when the plan to replace an older plant by a new and bigger plant can be realized. SABIC is at the same time going to increase production at its German site and has announced investments to an amount of 30 million euros in its plants and logistic infrastructure.
The management has informed the staff and the Works Council in Gelsenkirchen of the plans. As next step the company management will have discussions with the Works Council about options to limit the consequences for the employees. Possibilities that are being considered are for example jobs at SABIC in the Netherlands and Saudi Arabia, part-time retirement and transitional arrangements for employees whose jobs disappear.
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