200 jobs at risk as chemical plant looks to halt production

Up to 200 jobs are facing the axe after the operators of the former ICI chemical plant in Thornton announced proposals to stop production on the site.

AGC Chemicals Europe is launching a consultation with staff at the Fylde coast plant, which it says has experienced 'significant financial and operational challenges', generating a loss for the past four years.

The manufacturing operation on the Hillhouse Technology Enterprise Zone currently has around 190 employees as well as 18 agency staff.

In a statement, the company said no final decision had been made. However, all workers at the plant could be affected if the plan goes ahead.

It said: “Despite continued investment from AGC Inc. and the hard work of Hillhouse employees, the situation is no longer sustainable in the context of a volatile and competitive market.

“Our immediate focus is the people who are affected, and to begin a meaningful consultation process. The consultation is expected to take at least 45 days.

“AGC Chemicals Europe, Ltd. will work closely with unions and employee representatives with a view to seeking their agreement on various matters, including how we might avoid or reduce dismissals and mitigate the impact for employees.

“We appreciate these are difficult and uncertain times for our colleagues and we will seek to be informative, responsive and supportive through the consultation period.”

It added: “If a decision is taken to cease manufacture, AGC Chemicals Europe, Ltd. remains committed to ensuring compliance with all regulatory obligations, including maintaining the necessary staff for environmental permit compliance and any environmental monitoring that may be required.”

If the plan is carried forward AGC says it is envisaged that production will cease by the end of the calendar year.

AGC Chemicals Europe is part of Japan-based AGC Group, one of the world's largest manufacturers of glass, chemicals, electronics materials and advanced technologies.

The Thornton operation manufactures specialist fluoropolymer materials which are used across a range of industries.

AGC acquired the plant from ICI in 1999. Fluoropolymer manufacturing at Hillhouse dates back to the 1950s and with ICI Hillhouse and the Burn Naze Chemical Works, the area has served as a major chemical manufacturing site since the 1890s.