Arlanxeo plans to close its loss-making French rubber plant amid weak demand, rising costs, and persistent competitiveness challenges in Europe.
Netherlands-based synthetic rubber manufacturer Arlanxeo Holding has announced its plan to permanently shut down its loss-making rubber production facility in Port Jerome, France, citing prolonged weak market demand and worsening economic conditions in the European chemical industry. The site, which produces polybutadiene rubber (PBR) and styrene-butadiene rubber (SBR)—key materials used in tire and industrial rubber manufacturing—has been operating at a continuous loss, according to the company’s management.
Arlanxeo’s CEO, Stephen Van Santbrink, emphasized that the decision follows a detailed evaluation of the plant’s financial and operational performance amid challenging market circumstances. He pointed out that the European chemical sector has been facing persistent difficulties, including sluggish demand, escalating energy and raw material costs, unbalanced global trade dynamics, and increasingly stringent regulatory frameworks. These factors have collectively weakened the region’s industrial competitiveness and placed significant strain on companies operating across the entire value chain.
“The Port Jerome site has unfortunately remained in a structurally loss-making position,” Van Santbrink stated. “Despite numerous initiatives and continuous improvement efforts, we have not been able to identify a sustainable path toward structural profitability. The decision to consider closure is not made lightly.”
He further expressed concern for the workforce, acknowledging the potential impact on employees and local communities. “We deeply regret the need to explore these steps and recognize the consequences this may bring for our colleagues. Should the closure proceed, we are committed to treating all employees with respect and supporting them through the transition by seeking suitable alternative opportunities,” he said.
Arlanxeo has initiated a formal information and consultation process with the Works Council at the Port Jerome site. The outcome of these discussions will determine the final decision regarding the facility’s closure.
A subsidiary of Saudi Aramco, Arlanxeo plays a significant role in the global synthetic rubber market. The company is a major consumer of butadiene, an essential feedstock in rubber production, and operates more than 10 production sites across eight countries, supported by four dedicated research and development centers worldwide. Arlanxeo’s products are widely used in automotive, construction, and industrial sectors, known for their durability and performance characteristics.
The proposed closure of the Port Jerome facility underscores the ongoing struggles faced by the European chemical and materials industries amid rising production costs and fierce competition from Asia and North America. Arlanxeo’s decision reflects the broader structural challenges confronting manufacturers seeking to maintain profitability in a shifting global market environment.
