Over the past year, chemical and resin companies have been battered by plummeting prices and low-demand for new investment in end product manufacture.
The Netherlands-based LyondellBasell Industries, one of the giant’s of the chemical and resin manufacturing industry, has announced that it will lay off more than 3,000 employees and 2,000 contractors companywide. Roughly 20 offices and 10 manufacturing plants will be closed as well.
The 2007 merger of Lyondell and Basell has in part prompted these tough cost control measures. The cost reduction target through 2010 has been significantly increased.
"The original merger plan targeted a fixed-cost reduction of approximately $200 million. Based on our efforts through the second half of 2008 and particularly in the first quarter 2009, we have increased our goal to $700 million," said Ed Dineen, LyondellBasell’s Chief Operating Officer. "More importantly, we believe we will demonstrate a substantial part of this target in the 2009 bottom line, given first-quarter performance."
This follows a 15% reduction in the company’s workforce in December 2008 and bankruptcy filings earlier this year.
Privately-held LyondellBasell Industries is a global leader in polyolefin technology and production. Its Hifax polypropylene resins are used for geomembranes in applications requiring mechanical toughness, flexibility, barrier properties and environmental resistance.
ADDITIONAL LINKS
LyondellBasel Corporate Website
http://www.lyondellbasell.com
LyondellBasell Press Release on Layoffs
http://lyondellbasell.mediaroom.com/index.php?s=43&item=715
Chris Kelsey is the editorial director for geosynthetica.net. He can be reached at chris@geosynthetica.net.
