Sabic’s OIefins 6 facility at Wilton closing after 50 years
The Unite union says around 100 of its members will lose their jobs, but the ripple effects will hit the region for generations.
Tees Valley Mayor Ben Houchen said the news was ‘a devastating blow’ and Unite general secretary Sharon Graham described it as ‘a disgrace’.
The Cracker is officially called Olefins 6 and produces ethylene by ‘cracking’ large hydrocarbon molecules into smaller, more useful molecules.
The Wilton site has been offline since the end of 2020 and was due to be converted to run entirely on gas feedstocks, but last month it was reported that Sabic could be looking to sell its European petrochemicals business amid high energy costs.
Just a few days ago The Northern Echo reported on a huge threat to the Ensus plant after a new UK-US trade deal ended 19 per cent tariffs on bioethanol coming from America. Now, if Ensus and the Cracker were to go, the result for the whole Wilton site could be disastrous, as many of the services and their costs are shared between the companies.
Mayor Ben Houchen said: “This is incredibly concerning news and a devastating blow to our region. My thoughts are with the workers, contractors and families affected by SABIC’s decision. While the LDPE facility will continue operating, the scale of this closure and the uncertainty it creates for so many people is deeply worrying.
“My organisation will stand ready to support those impacted by the decision – but it’s clear that support from local partners alone is not enough. We urgently need a proper response from Government, starting with a targeted support package for affected workers and families, and a clear plan for how we retain and grow industrial jobs in areas like Teesside.
“This is yet another symptom of a national policy failure. The chemicals sector is a foundation industry – the lifeblood of our economy in the North East – yet it didn’t even feature in the Government’s Industrial Strategy this week. It is beyond indefensible.
“If ministers are serious about industrial growth, we need action not platitudes. That means cutting the cost of doing business by tackling sky-high energy prices, reversing the damaging increase in National Insurance that hits both workers and employers, and putting our industrial regions at the heart of economic policy.
“Along with ENSUS recently, we can’t keep watching critical industrial assets shut down while Whitehall fiddles with more strategies, reviews, and working groups. The time for warm words is over. We need urgent intervention to protect skilled jobs, secure our supply chains, and make the UK competitive for manufacturers again. Teesside has the people, the expertise, and the ambition. Now we need the Government to match it with real backing.”
Sharon Graham said: “It is a disgrace that valued workers are being threatened with redundancy by a profitable company.”
It said consultations over Olefins 6 are set to begin on Tuesday.
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.”
“The Teesside community was promised more jobs in the local area but this never happened. This means our members at Sabic have few options for where they can find alternative employment and understandably there is a lot of anger due to this.”