SABIC will permanently close its ethylene plant in Teesside, citing high energy costs and oversupply, risking 330 local jobs.
Saudi Arabia-based petrochemical major SABIC has officially confirmed the permanent closure of its Olefins 6 ethylene cracker located in Wilton, Teesside, in northeast England. The plant, which had been operational for nearly 46 years, has been offline since late 2020. Originally, plans were in place to convert the cracker to run entirely on gas feedstock instead of liquid naphtha. However, due to a combination of financial and market pressures, those plans have now been abandoned.
The key factors behind the shutdown include persistently high energy prices in Europe, which have rendered many facilities economically unviable in comparison to counterparts in regions such as the Middle East. The European ethylene market is also currently dealing with significant overcapacity, further diminishing the commercial viability of the Teesside site. These challenges led SABIC to make the difficult decision to cease operations at Olefins 6 permanently.
Despite the closure of the ethylene cracker, SABIC has confirmed that its low-density polyethylene (LDPE) facility at the same Teesside location will remain fully operational. The LDPE plant is one of the largest of its kind globally and plays a key role in the company's ongoing operations in the region.
The closure is expected to have a major human and economic impact. Around 330 jobs are now at risk due to the decision, with consultations with employee representatives scheduled to begin on July 1. The news has sparked backlash from labor unions. Sharon Graham, General Secretary of Unite the Union, criticized the company for threatening layoffs while remaining profitable. In 2024, SABIC reported a net profit of SAR 1.5 billion (€341 million), a substantial turnaround from a net loss of SAR 2.8 billion (€637 million) in 2023.
Unite regional officer Fazia Hussain-Brown expressed deep concern about the potential job losses and their broader effects on the community. “The potential loss of so many jobs in the area is a devastating blow to our members and their families, as well as the local economy,” she said. The union has pledged to actively engage with SABIC throughout the consultation process and to use every available resource to support affected workers.
According to SABIC’s own figures, its Teesside operations contribute approximately GBP 400 million (€469 million) annually to the local economy through wages, procurement of goods and services, and utility expenses.
This development aligns with a broader trend across Europe’s petrochemical sector, as major firms such as TotalEnergies in France, LyondellBasell in the Netherlands, and Ineos in Germany have also announced closures or reductions in cracker capacity.
