SCORES of jobs look set to be lost on the South Bank, as the huge Cristal plant enters consultations with staff.
About 70 jobs are said to be at risk by bosses at the 62-year-old Stallingborough facility, with the market for the product – whitening agent titanium dioxide – weak, and prices lower than expected.
The move is aimed at securing the long-term future of the site, as it weathers the downturn in the sector, and comes with a promise of investment in new technology.
Reacting to the announcement, made to staff yesterday, regeneration portfolio holder for North East Lincolnshire, Councillor Ray Oxby, described it as saddening, and MP Martin Vickers said it was a matter of regret. Both have offered their support.
Jamie Scott, site director for the Saudi Arabian-owned company, said: "It is with extreme reluctance that we have announced this proposal to reduce our head count at Stallingborough, however, it is absolutely necessary to ensure our survival in the future.
"Our manufacturing cost position at present is not sustainable and despite a good year in 2014 in terms of performance and reliability, the titanium dioxide market is slowing and prices are dropping, meaning it is even more critical that we reduce production costs.
"This is part of a long-term sustainability plan for the site."
The cost-saving programme is made up of a number of elements including improved technology, more efficient processes, as well as job losses.
Mr Scott added: "We are committed to the future of manufacturing titanium dioxide in North East Lincolnshire and we have to take these measures to ensure we can survive these difficult market conditions.
"The global market tends to move in cycles so we do expect things to pick up again in the future and we want to ensure that our plant is in the best and most cost effective position to be able to move with that cycle.
"We will continue to make strategic capital investment in our plant and our focus on safety will not waver."
Currently employing 500 people, the 160-hectare site pumps £21 million into the local economy in payroll alone, with £133 million spent on goods and services, a proportion of which is local, with 100 contractors regularly on site.
Consultations will now begin with both union representatives and its employee consultative group.
