- The plant will shut down by the end of the year due to severe competition.
- The market is oversaturated with butyl rubber, used in airtight tires.
- Production costs have soared, making operations unsustainable.
- A consultation process with labor unions will devise a social plan for workers.
Plant Closure and Job Losses
Rubber manufacturer Arlanxeo has announced the closure of its Zwijndrecht plant, resulting in the loss of 278 jobs. This decision follows a previous restructuring plan from a year ago that aimed to eliminate 70 positions. However, due to mounting challenges, the impact has significantly escalated.
Reasons for Closure
Saudi oil company Aramco, which owns Arlanxeo, confirmed that the plant will shut down by the end of the year, citing severe competition in the global rubber industry. CEO Donald Chen explained that the market is oversaturated with butyl rubber, a key component in making airtight tires, and the company's production costs have soared.
Failed Efforts to Sustain Operations
Despite efforts to boost the Zwijndrecht site, including additional capital investments and activity reorganizations, a sustainable future for the plant could not be secured. The plant had already faced intermittent shutdowns over the past two years, and with energy costs rising and customer demand dwindling, production became unsustainable.
Impact on Workforce
"The threat of closure has loomed over us for almost two years," said Site Manager Geert Bussé. "Last year, we were forced to halt production for nearly nine months, and while we resumed briefly this year, the situation remained untenable. We primarily compete with low-cost countries, which puts us at a significant disadvantage."
Support for Affected Workers
A consultation process with labor unions and social partners will begin shortly to devise a social plan for supporting the affected workers. The company, which has operated in Zwijndrecht for 60 years, will provide emotional and psychological support to those who need it. Bussé emphasized the importance of handling the closure with respect and care, particularly for long-serving employees.
