Dec 2 2005
Shell Chemicals have announced plans to enhance the cost competitiveness of their European ethoxylates and polyols businesses by improving the asset utilisation of manufacturing assets at Wilton and Pernis. As a result, the existing polyols and ethoxylates units at Carrington, Manchester will close in summer 2007.
The production of polyols will transfer to the polyols facility at the Shell Pernis manufacturing complex in Rotterdam, which will be upgraded to take on the additional capacity. Ethoxylates production will move to the Shell facility at Wilton, near Redcar on Teesside. The transfer of activities to these sites will be phased from mid-2006 until closure of the Carrington units.
The move will have minimal impact on supply of the core products currently received from Carrington. Customers who receive these products will be supplied from Pernis and Wilton in future. The two Carrington units are operated by Basell.
"The restructuring is intended to maximise value from our asset base in Europe by enhancing the efficiency and sustainability of our CASE polyols business and improving the net cost structure for ethoxylates." explained Sven Royall, Vice President, Strategy and Portfolio for Shell Chemicals. "The decision to close the units is not linked to performance at Carrington, which has continued to be strong in challenging times."
This move is the latest step in the Shell Chemicals strategy of reinforcing the global position of Shell chemicals companies in key markets, by rationalising assets and growing capacities, thereby improving efficiencies at key sites around the world. This is consistent with the Shell Group strategy of improving the profitability of its Downstream business.