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Birmingham Post
Birmingham Post
Business
Tom Keighley

Hundreds of jobs in danger at Mitsubishi Chemical's Teesside site

Gas prices and falling demand have spurred Mitsubishi Chemicals UK to stop production at its Billingham factory, leaving more than 200 workers facing redundancy.

The 90-year-old Cassel plant has been offline since January this year, initially to facilitate a planned "overhaul", but which was extended in September due to the rapidly escalating price of gas, which is required in large quantities at the site. Mitsubishi said it intended to make a final decision in January, following a review of the operation but revealed that a review of the business had determined it was not economically sustainable.

The firm says it had looked at temporary mothballing as well as a "complete reinvestment" at Cassel but found the market for methacrylates - a key component of acrylics used in everything from paints to automotive parts - was increasingly competitive. Workers at Mitsubishi's separate electrolyte business at the same site, which makes electric vehicle battery parts, are not affected by the announcement.

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Malcolm Kidd, EMEA VP for the methacrylates business, said: "This is a very sad day for everyone associated with our business on Teesside. Our employees and various partners have worked tirelessly and creatively to support the business in delivering high quality products safely and sustainably over decades but our position now and looking ahead appears simply unsustainable. Every effort will now go into supporting our skilled and talented production technicians, and engineering, technical and business support staff during this difficult period."

Mitsubishi's acrylics products are sold into Europe, which is also seeing high inflation and recessions. The plant makes material for perspex-type products from kitchen worktops to shop signs.

The Cassel site uses more natural gas than is used in all the homes throughout the Stockton borough - equivalent to around 100,000 households. The price of gas in 2022 is 620% higher than it was in 2019.

Tees Valley mayor Ben Houchen said: "This is incredibly troubling news, with workers and families now facing massive uncertainty in the run-up to Christmas and my heart goes out to all of those that could be affected. However, this industry has been active in Billingham for decades, with a huge wealth of invaluable expertise held by experienced workers that would be lost if the doors close. I am already talking to representatives from Mitsubishi and Government to see what can be done to ensure this remains a viable and thriving business and employer for years to come."

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