220 jobs at risk as chemical company plans to end production at Antwerp site
German chemical company Envalior plans to stop glass fibre production at the port of Antwerp by the end of this year, it announced at a works council on Tuesday. A total of 220 people could lose their jobs.
A week after Vioneo cancelled plans for a plastics plant in Antwerp, Envalior announced the discontinuation of its glass fibre operations in Kallo. The market has been under pressure for years, says Envalior, which emerged from a joint venture with Lanxess.
Envalior points to the huge energy and labour costs in Belgium, as well as falling demand for glass fibre and cheap production in low-wage countries. “Market conditions have evolved in such a way that we produce glass fibre at a cost price higher than the selling price,” a spokesperson said.
Continuing operations in Antwerp would cost the company tens of millions of euros, because new furnaces are needed.
Glass fibres are plastics that make other materials stronger and more resistant to heat, while remaining very light in weight. The reinforced materials are mainly used in car parts and electronic components for the construction industry.
"We recognise the major impact this intention can have on our employees, their families and the local community"
In accordance with Belgian legislation, the shutdown plan is now being discussed through a formal consultation process with employee representatives. Production will continue as planned during this process.
“Our priority now is to go through this process carefully in cooperation with the social partners and to provide the best possible support to the employees involved,” said managing director Geert Bussé. “We recognise the major impact this intention can have on our employees, their families and the local community.”
Envalior has just over 800 employees in Belgium, with 4,000 in total worldwide. The intention to wind down operations in Kallo has no impact on Envalior’s site in Lillo, where it has another chemical plant producing caprolactam and ammonium sulphate.
"The working class in Europe is clearly paying the price for the investments that are disappearing in abundance to China"
“We have of course known for some time that the market for glass fibre does not play to our advantage,” says Dries Terneven, spokesperson for the trade unions at Envalior.
However, he believes big chemical groups are behind the times when they complain about high energy and labour costs. “The working class in Europe is clearly paying the price for the investments that are disappearing in abundance to China,” he says. He hopes workers may be able to move to the Lillo site.
#FlandersNewsService | Envalior's site in Antwerp © PHOTO BELGIAN FREELANCE
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