HAGUE, Netherlands—Arlanxeo is set to close its butyl rubber production plant in Zwijndrecht, near Antwerp, Belgium, due to oversupply in the market, which will lead to the loss of 278 positions.
In an update to European Rubber Journal, the Dutch firm said production has already ceased at the location.
The site has been negatively impacted by "a substantial increase in the supply of butyl rubber from low-cost countries," according to Arlanxeo CEO Donald Chen.
Furthermore, the oversupply situation was compounded by a sharp increase in the costs of raw materials and energy, Chen said in a previous statement provided Sept. 19 to ERJ.
According to Arlanxeo, the plant was only operational from February to May this year.
"We recognize the impact a closure at Zwijndrecht may have on our employees, and we regret the need to undertake these steps," he said, adding that Arlanxeo is now working to find alternative employment for all impacted employees, including via engagement with external outplacement agencies.
"In addition, we will provide impacted employees with a social plan which reflects their valued contribution to the company," Chen said.
The Saudi Aramco-owned Arlanxeo's Zwijndrecht site has a capacity to produce 150,000 metric tons per year of butyl rubber.
Arlanxeo also operate butyl rubber production facilities in Sarnia, Canada, and in Singapore, with listed capacities of 150,000 and 100,000 metric tons, respectively.
