Latest news with #Sabic
Telegraph
25-06-2025
- Business
- Telegraph
Major chemical factory shuts days after Starmer unveils Industrial Strategy
The owner of one of Britain's biggest chemical plants has confirmed it will close, dealing a blow to Sir Keir Starmer 's new Industrial Strategy just days after it was launched. Saudi Aramco-owned Sabic said on Wednesday that it had decided to shut the Olefins 6 'cracker' facility in Teesside permanently following a review of 'competitiveness'. It comes after the company had paused a major conversion of the plant to run on gas feedstock, sparking speculation that bosses were on the verge of announcing its closure. The move puts about 300 local jobs at risk and underscores the strain faced by Britain's chemicals industry as a result of crippling energy prices and a tough global market.
ITV News
25-06-2025
- Business
- ITV News
Jobs at risk as Saudi firm Sabic confirms closure of Olefins 6 cracker on Teesside
A chemical plant is set to close on Teesside following a decision by its Saudi owner. It is understood about 100 jobs could be at risk at the Olefins 6 cracker, on the Wilton site at Redcar, as a result of the permanent closure which was confirmed by SABIC on Wednesday (25 June). Union bosses have labelled the move as a "devastating blow" to workers and the local economy. Petrochemical group Sabic said it regretted the decision which was communicated to employees and stakeholders this morning. A spokesperson said: "This decision is the result of a thorough analysis aimed at optimizing competitiveness and aligning with Sabic's long term strategic priorities to ensure the company remains agile and resilient in an evolving global landscape. "Sabic is committed to carrying out a meaningful collective consultation with employee representatives and a fair redundancy process consistent with applicable legal requirements, as well as implementing other support measures aimed at minimizing the impact on employees. "The exact number of job losses will be determined once this consultation has been completed." Unite said about 100 of its members face redundancy. The union's regional officer, Fazia Hussain-Brown, said: "The potential loss of so many jobs in the area is a devastating blow to our members and their families, as well as the local economy. "Unite will be actively engaging with Sabic throughout this consultation process, using all of the resources available to support our members." Sabic's Olefins 6 facility, which opened in 1979, produces the raw material ethylene. It has been offline since the end of 2020 and was due to be converted to run entirely on gas feedstocks. Since it has been down, Unite members have been paid to keep the plant safe and to have it ready to come back online for future operations. The union said its owner, Saudi-run Sabic, made a net profit of almost £300m, last year. However, last month it was reported that the firm could be looking to sell its European petrochemicals business amid high energy costs. The SABIC spokesperson added: "Sabic's LDPE plant operations in Teesside will continue to operate normally. "The company's priority is to support our employees during this difficult time and to remain focused on the safe, compliant, and reliable operation of its remaining assets on Teesside. "SABIC will continue to focus on enhancing operational efficiency to position the company for sustainable long-term profitable growth."
BBC News
25-06-2025
- Business
- BBC News
Sabic confirms closure of Teesside chemical plant with jobs to go
Hundreds of workers could lose their jobs after the manufacturing and chemicals giant Sabic announced the closure of its site in north-east Saudi Arabian firm, one of the world's largest petrochemical manufacturers, will shut its Olefins 6 cracker plant in Wilton, Teesside, after 46 years of it exact number of job losses is not yet known but the firm currently employs 330 people at the said its decision was the result of a "thorough analysis aimed at optimising competitiveness", but Unite said the news was a "disgrace" from a profitable company. The firm made a net profit of almost £300m last year but last month it was reported that Sabic could be looking to sell its European petrochemicals business amid high energy Teeside Olefins 6 cracker facility produces the raw material ethylene to make building blocks for a variety of company produces chemicals, fertilisers, plastics and metals at its plant in Wilton, near Redcar, but also has storage and logistics facilities in North Tees and Teesport. 'Devastating blow' Its Olefins 6 facility had been offline since the end of 2020 and was due to be converted to run entirely on gas feedstocks. Unite said its members had been paid to keep the plant safe and ready to come back online for future Graham, Unite general secretary, said: "It is a disgrace that valued workers are being threatened with redundancy by a profitable company."Fazia Hussain-Brown, Unite regional officer, said the potential loss of so many jobs was a "devastating blow".She said there were "few options" for alternative employment for the workers which had "understandably" caused "a lot of anger". 'Support our employees' Consultations are expected to begin on 1 said the decision to shut the plant was also down to ensuring "the company [remained] agile and resilient in an evolving global landscape".They told the BBC: "Sabic is committed to carrying out a meaningful collective consultation with employee representatives and a fair redundancy process consistent with applicable legal requirements, as well as implementing other support measures aimed at minimising the impact on employees. "The company's priority is to support our employees during this difficult time and to remain focused on the safe, compliant, and reliable operation of its remaining assets on Teesside."They confirmed the LDPE plant operations in Teesside would continue to operate normally. Follow BBC Tees on X, Facebook, Nextdoor and Instagram.
Yahoo
25-05-2025
- Business
- Yahoo
Ed Miliband's net zero targets threatened by BP retreat
A massive hydrogen project at the heart of Ed Miliband's net zero plans risks being cancelled as BP retreats from green targets. The H2Teesside scheme, announced in 2021 by the company's then chief executive Bernard Looney, was designed to produce 'blue' hydrogen from natural gas, and then capture and store the carbon emissions. It had been slated to deliver more than 10pc of the 2030 target set by Mr Miliband, the Energy Security and Net Zero Secretary, for hydrogen production and was expected to come online by the late 2020s. But sources have warned that BP is now likely to scale back or even cancel the 1.2 gigawatt project as it struggles to secure enough customers to make the investment worthwhile. The FTSE 100 company is currently in talks with the Government about whether greater state support can be provided, with Mr Miliband's department viewing the scheme as a potentially important source of hydrogen for both industrial uses and power plants. On Friday, Ben Houchen, the Tees Valley mayor, said he was seeking urgent talks with BP about the 'highly concerning' potential setback. He said: 'Asking for increased government subsidy in this way is not a sound basis for an investment of such scale and BP must now be clear in setting out a coherent plan for the project. 'There remains a high level of interest for this site from alternative investors and we will continue to pursue all options.' The H2Teesside project is thought to have run into trouble because of doubts about the future of a nearby chemical facility run by Sabic, the Saudi-owned petrochemicals giant. The plant was expected to be an anchor customer, providing a steady source of demand. But a major upgrade of the facility, that would have made it capable of using hydrogen feedstock, was recently paused and Sabic is understood to be considering the site's closure. Against this backdrop, The Telegraph understands BP has been considering reducing the scope of H2Teesside by as much as 75pc or scrapping it altogether. A source said BP had warned the Government that the project was now unlikely to be viable unless the state agreed to support both the hydrogen factory and its customers. BP has already cancelled the other hydrogen scheme it had proposed in the area, HyGreen Teesside, which would have made 'green' hydrogen via electrolysis. A decision to scrap H2Teesside as well would represent a complete reversal of the company's pledge under Mr Looney to invest £2bn in regional hydrogen projects. Mr Looney travelled to Teesside to announce both schemes personally as part of his quest to reinvent BP as a net zero champion. It also means Mr Miliband may face a choice between allowing the project to collapse or promising even bigger subsidies at the expense of billpayers. Amid warnings that sky-high energy prices are killing British manufacturing, he has promised to 'revitalise our industrial communities' with almost £22bn of support for projects such as H2Teesside that will capture and store carbon dioxide emissions. Under current boss Murray Auchincloss, who took the reins after Mr Looney left over an undisclosed office relationship in September 2023, BP has been slashing investment in green energy projects. It follows pressure from Elliott Management, an activist investor, which accused the company of 'abysmal' cost discipline. One person briefed on the situation claimed that Elliott Management had signalled its opposition to the H2Teesside scheme in the past, although a source close to the investor denied that. Hydrogen has been hailed as a possible green 'superfuel' of the future, with investors touting its potential to replace other gases in heavy industry, fuel aircraft and heavy machinery, and be burned in power plants to generate electricity. However, experts have warned that formidable obstacles remained to making it commercially viable. On Friday, BP said it was 'focused on a few high-graded projects in hydrogen and carbon capture and storage'. The company has confirmed it is pressing ahead with the separate Net Zero Teesside Power scheme, which will see it build a flexible gas-fired power plant equipped with carbon capture technology. It is also participating, alongside other firms, in the Northern Endurance Partnership, a network that will transport CO2 captured from sites along the east coast out to storage wells under the North Sea. A BP spokesman said: 'We continue to work with [the] Government to progress H2Teesside.' A government spokesman said: 'We are delivering first-of-a-kind carbon capture and hydrogen projects in the UK, including in Teesside, supporting thousands of jobs, securing the future of heavy industry and tackling the climate crisis. 'H2Teesside could provide hydrogen to both industry and potential hydrogen-to-power projects that could be operational from 2030, and we are continuing to work with BP on the project.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
18-05-2025
- Business
- Yahoo
Saudi Arabia's Sabic Is Said to Explore IPO of Its Gas Business
(Bloomberg) -- Saudi Arabian chemicals giant Sabic is exploring an initial public offering of its gas business, according to people familiar with the matter, amid a broader operational review. As Coastline Erodes, One California City Considers 'Retreat Now' How a Highway Became San Francisco's Newest Park Maryland's Credit Rating Gets Downgraded as Governor Blames Trump America, 'Nation of Porches' Power-Hungry Data Centers Are Warming Homes in the Nordics Saudi Basic Industries Corp. is in early-stage talks with potential advisers — including Lazard Inc., HSBC Holdings Plc, JPMorgan Chase & Co. and Morgan Stanley — about a possible listing as soon as this year, the people said, asking not to be identified because the information is private. National Industrial Gases Co., in which Sabic owns a 74% stake, generated 1.6 billion riyals ($427 million) in revenue in 2024, according to its financial statements. Sabic also has exposure to the gas business through its petrochemicals unit. Deliberations are at a preliminary stage, and no final decisions have been made on timing or adviser mandates, the people said. Representatives for Lazard, HSBC, JPMorgan and Morgan Stanley declined to comment. Sabic did not respond to a request for comment. Get the Mideast Money newsletter, a weekly look at the intersection of wealth and power in the region. Saudi companies have raised about $1.3 billion through IPOs so far this year, making it the most active market in the Gulf. Demand for recent listings has remained strong despite tariff-driven volatility. First-time share sales by low-cost carrier Flynas Co. and Specialized Medical Co. were oversubscribed shortly after bookbuilding began this month, while United Carton Industries Co. drew $20 billion in orders for its Riyadh IPO. Global chemicals producers are under pressure from soft demand, rising costs and shrinking margins. Sabic itself has posted two consecutive quarterly losses and is planning a restructuring to reduce expenses. Its shares have fallen nearly 10% since the start of the year, compared with a decline of about 5% for the broader Saudi index. --With assistance from Anthony Di Paola. Microsoft's CEO on How AI Will Remake Every Company, Including His Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race As Nuclear Power Makes a Comeback, South Korea Emerges a Winner Tariffs Won't Reindustrialize America. Here's What Will ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
