INOVYN has today announced that its PVC production facility at Schkopau Site, Germany, will not restart and that the Company will now pursue a plan for permanent closure of the Site.
Production at Schkopau has been suspended since 31 December 2014 following expiry of the VCM supply contract with DOW. Since that time both parties have been in negotiations for a new contract, however these have failed to reach agreement.
Comments Jeff Seed, Managing Director of Schkopau Site for INOVYN: “It is extremely disappointing that we have been unable to agree a competitive long-term supply contract with DOW. With no contract in place the operations at Schkopau are no longer economically viable and we have no option but to plan for closure of the Site.
“Whilst unavoidable, today’s announcement is of course unwelcome news for our employees and those of our partner organisations at the Site. We will do everything we can to manage the closure sensitively and in full co-operation with employees and their representatives.”
INOVYN will continue to ensure continuity of supply for its customers previously supplied from Schkopau by sourcing PVC from other production sites in its extensive supply chain network, underpinning its ongoing commitment to the European Vinyls market as the leading producer.
ENDS
INOVYN announces planned closure of Schkopau Site, Germany
