SABIC announces closure of Olefins 6 facility in Teesside, UK
This news was first reported by the BBC: https://www.bbc.com/news/articles/cjd23eggj7jo.
Chemical workers in Teesside are facing uncertainty following the announcement that SABIC will permanently close its Olefins 6 facility at the Wilton site. Operating since 1979, the plant has been a major part of the region’s chemical manufacturing landscape for decades. SABIC stated that the closure follows a “thorough analysis aimed at optimizing competitiveness” in response to ongoing global challenges. The decision has left workers shocked and raised significant concerns about the future of the local chemical industry.
While the Olefins 6 facility — which produces ethylene, a key raw material in plastics and petrochemicals — will shut down, SABIC's nearby low-density polyethylene (LDPE) plant will continue operations. This plant had relied on feedstock from the Olefins 6 cracker, but it will now source materials externally. Though the exact number of job losses has not been disclosed, SABIC’s Teesside operations employ around 330 people directly and a similar number through contractors. A formal consultation process with employees has begun to determine next steps and potential redundancies.
The closure follows months of speculation and comes after SABIC paused a multimillion-pound investment project that would have converted the facility to run entirely on gas feedstocks. That project was halted in 2024 due to uncertain market conditions. The facility had already been offline since the end of 2020. SABIC’s wider business, facing high energy costs across Europe, also recently reported a $323 million net loss in Q1 2025. These financial challenges have prompted the company to evaluate its European petrochemical operations, including the potential sale of assets.
In its official statement, SABIC emphasized its commitment to supporting affected employees and ensuring a fair redundancy process in line with legal obligations. The company also reaffirmed its focus on maintaining safe and compliant operations at its remaining Teesside assets, with the LDPE plant expected to continue normal operations. SABIC stated that this strategic decision aligns with its long-term goals to stay resilient and competitive in a shifting global market.
The closure of Olefins 6 is not just a loss for SABIC but a significant moment for Teesside’s industrial heritage. As one of the region’s landmark chemical facilities, its shutdown marks the end of an era that began in the early 1950s with previous generations of cracking plants. Local and national stakeholders will now be watching closely to see how SABIC's decision impacts the wider UK petrochemicals sector and how the government’s newly announced 10-year Industrial Strategy might help offset future industrial losses.
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