Spanish PVC maker Ercros takes drastic cost reduction measures amid low demand

21-May-09
Ercros (Spain), a chemical maker also active in the polyvinyl chloride (PVC) market, has announced restructuring plans which it says will save expenditure by EUR 48 mln per year and reduce 410 employment positions (22%) amid the steep decline in demand led by economic crisis. Due to decline in the PVC demand, the company will shut its ethylene dichloride (EDC) plant at the Palos factory. In addition, Ercros will also close down its chloromethanes plants at the Palos and Flix factories due to deterioration of the chloroform market (main product of this family). As part of the cost reduction measures, the electrolysis plant at the Palos factory will be closed while the electrolysis plant at the Flix factory will be provisionally closed down. The production at its Spanish sites including Almussafes, Aranjuez, Cartagena, Cerdanyola, Flix, Tarragona and Tortosa will be streamlined with the existing demand. These measures imply the lay off of 410 employees -- 271 of them permanent and 139 temporary lay offs.
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