Up to 200 jobs are under threat after SABIC Europe announced it will re-structure its aromatics operations on Teesside, leading to the closure of Aromatics 2 unit at Seal Sands, on the outskirts of Hartlepool.

Bosses say the cutbacks come after "a wide-ranging review of the long-term viability of the business".

They say the exact numbers of jobs to be cut are not yet known but SABIC says it will try to find jobs for the affected workers within the company.

Bosses said they wanted to make an early statement because of the effects on the European market.

David Hughes, business unit director for aromatics and oxygenates at SABIC Europe, said: "We recognise the impact of our actions on the European market for our products. We will be working with our customers and suppliers over the coming weeks and in order to allow these discussions to start, we are making this announcement at this early stage."

The Aromatics 2 unit is based at the SABIC UK Petrochemicals North Tees site. It will close along with the paraxylene plant at the Wilton Site near Redcar.

It is thought the job losses will be split equally between both plants.
The plans also include an upgrade of the remaining Aromatics 1 plant at North Tees.

Bosses say their aim is to bring the total SABIC UK Petrochemicals site operational and commercial performance to a sustainable level.

Mr Hughes said: "On Teesside, SABIC UK Petrochemicals remains fully committed to its Olefins Cracker operations at Wilton and Cyclohexane production at North Tees.

A company statement said a clearer idea of job numbers will be known once the full details of the restructuring plans are worked out.

The closures are expected to take effect by the end of the year.
Frank Cook, MP for Stockton North, said the news was regrettable but understandable.

He said: "Given the massive upheavals we are seeing in the oil market, it cannot be surprising that the chemicals industry is feeling the impact.

"Nevertheless the immediate impact on the affected workers and their families is worrying .

"I will want to ensure that everything possible is done to help them to be either redeployed within the company or find alternative employment at the earliest date possible."