SABIC To Cut Jobs In Europe

Saudi Basic Industries Corp. plans to lay off 1,050 workers and shut down some of its manufacturing capacity in Europe. The company already has begun discussions with unions and works councils at some of its operations there. SABIC operates petrochemical plants in Teesside, England; Geleen, the Netherlands; and Gelsenkirchen, Germany. The Saudi firm established its European presence through the purchase of businesses from DSM in 2002 and Huntsman Corp. in 2007. SABIC blames the downsizing on slow growth in Europe, where consumer and infrastructure spending have been sluggish. Furthermore, the company says competition has been stiff from Asia and from U.S. petrochemical producers that enjoy cheap shale-derived feedstocks.