ARCHIVED - 95 jobs lost as Sabic closes high-tech plastics plant in Cartagena

The La Aljorra plant will be maintained in case re-opening becomes viable in the future

Sabic, the Saudi-owned manufacturing company which is among the largest in the world in the fields of petrochemicals, chemicals, industrial polymers, fertilizers and metals, has announced that it is to close its state-of-the-art plant in La Aljorra, in the municipality of Cartagena, and that the 95 employees there are to be made redundant as a result.

In making the decision public the company expressed its regret at the “difficult and painful” move, which has been made after a thorough viability study, committing itself to ensuring that those laid off are treated fairly while at the same time explaining that there will be no impact on the other production plants owned by the company in Cartagena.

The reason given for the closure of the HPP plant is that the demand for thermoplastic resins produced in Cartagena has been seriously affected by the emergence of LED technology in car headlight systems, among other things, and the market is moving away from the areas in which the La Aljorra plant specializes.

Despite the setback, Sabic maintains its commitment to projects in the Region of Murcia related to the environment and to STEM (Science, Technology, Engineering and Mathematics) education.

It is ten years since the HPP plant in La Aljorra was opened, adding to a complex which at present employs a total of 750 people, and although the closure of the facility is described as an “indefinite suspension” it appears to be final. However, after a similar decision was made in 2002 at the Lexan 2 plant production was resumed two years later, and on this occasion as then a reduced team of maintenance staff will continue to look after the fixed assets in the hope that it may become viable to make them operative again in the future.

The Ultem plant owned by Sabic in La Aljorra

The plant now being closed down was opened in September 2010 following a 300-million-euro investment, and was formerly owned by General Electric. It was purchased in 2007 as part of an 11.6-billion-dollar deal, at the time the largest industrial investment by an overseas investor in Spain.

Although the “Ultem” plant employed under 100 people directly it is estimated that 3,500 more rely on the plant indirectly for employment through supply and services.

The main product at the plant is Ultem resin, a high-performance plastic used in a vast variety of products. It is ultra-light and has a wide variety of applications in the aerospace and transport manufacturing industries, where it is used to make high resistance, lightweight frames and mouldings, reducing weight and thus reducing the energy required for propulsion.

It has high heat resistance, outstanding strength, extreme moldability and high fire resistance properties and at the time was only manufactured in 2 plants worldwide, one in Indiana (USA) and the other in La Aljorra.

Images: Sabic

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