In order to achieve company objective of becoming number one in Europe, Sabic has planned workforce reduction at the company's site in Germany. The job losses result from Sabic Polyolefine Perspektive 2010 study.
Sabic had acquired the Gelsenkirchen polyolefins site in Germany in 1998, through its takeover of DSM Petrochemicals. Since 1998, £400m (E580m) has been invested at Gelsenkirchen, taking output from 250,000 tpa to 850,000 tpa. However, the Saudi group has expressed dissatisfaction at the results and plans to cut a total of 200 jobs from the total of 540 at the German site. 150 will lose their jobs in the next two years with a further 50 to follow by 2008. Possible transfers to Sabic plants in the Netherlands or Saudi Arabia are among the options being considered, in a bid to limit the impact.
The cuts will be accompanied by steps to modernise the German facility with £30m (E43m) to be committed to plant and logistics infrastructure.