Chemical firm Elementis is to slash its Teesside workforce after becoming the latest victim of soaring energy costs.
 The UK-based multi-national said this afternoon it was cutting about 120 jobs from its 230-strong workforce at its chromium plant at Eaglescliffe as part of a major company review. The firm said it was halving production at Eaglescliffe after its UK business had been in the red for the past two and a half years. Elementis blamed high energy costs for the continued losses and the announcement comes just weeks after chemical industry leaders predicted local plant closures and widespread job cuts due to rising fuel bills. Executive chairman Edward Bramson said: "We anticipate that this will leave us with a more profitable and less volatile business going forward." The Staines-based company also said has been hit by a strong pound and a "less favourable product and consumer mix". The announcement follows 25 job losses at Elementis's Teesside plant last year. Bob Bolam, Amicus regional organiser, said: "It has come as a total shock and we are totally opposed to compulsory redundancies. "Workers went through a painful process of redundancies last year which was sold to them as providing a future for Eaglescliffe but the company has now decided on further job cuts." Elementis Chromium is the world's largest producer of chromium, which is used in applications including timber treating, leather tanning and metal finishing. The Teesside facility - formerly known as British Chrome and Chemicals - has seen a gradual reduction in its workforce in the past five years after employing 400 in 1999. The company today said it will end production of chromic acid and chrome sulphate and concentrate on chrome oxide and sodium dichromate manufacture providing savings of £11.7m. In February, Elementis revealed it had slumped to an annual pre-tax loss of £7.8m. Earlier this month, the North East Process Industry Cluster (NEPIC), which represents the local chemical industry, warned up to 10,000 Teesside jobs could be at risk because of rising energy prices. Ian Mains, NEPIC spokesman, today repeated calls for the government to take action on high energy costs. He said: "We need the government to start taking this issue seriously as other countries provide relief for industry which reduces the volatility of prices and their impact on companies." |