MOSCOW (MRC) -- INEOS has today announced its intention to close production of Expandable Polystyrene (EPS) at its Marl site in Germany, at the end of Q4 2013, said the producer.
Discussions will now begin with employees and the Works Council to find alternative roles for the 65 people affected by this decision.
Expandable Polystyrene is mainly used in the insulation of buildings. As the European construction sector has suffered from adverse economic conditions, demand for EPS products has reduced.
Operating costs of the EPS plant have also been affected by the recent closure of the styrene monomer and polystyrene units at Marl. The loss of the styrene monomer and polystyrene units removed a number of operating synergies at the Marl site which left the EPS unit with an unsustainable fixed cost base and a weaker styrene monomer supply position.
The decision to close the Marl EPS plant follows a full and detailed review of the EPS business, which has highlighted the need for INEOS Styrenics to optimise its production capacity across its three remaining facilities. This will improve the cost efficiency of its business, as it continues to meet its customer needs in a highly competitive European market.
INEOS Styrenics remains committed to our EPS business. Following the closure of the Marl unit, it will continue to be one of the largest producers of EPS in Europe with 350 ktpa total capacity. From the end of the year it will supply high quality EPS products from production sites in Breda (The Netherlands), Ribecourt (France) and Wingles (France).
As MRC wrote before, Ineos formed PVC joint venture with Solvay. Two of Europe’s biggest chemical companies have agreed a joint venture that will create one of the world’s largest producers of PVC plastics by revenues. Solvay, the Franco-Belgian chemicals company, will pool its European business that creates chlorvinyls – the base materials for PVC plastics – with that of privately owned rival Ineos Group , in a move that will eventually result in the Anglo-Swiss company taking full control of the joint venture.
MRC