INEOS Phenol to reduce labour cost by 30% at Doel site in Belgium

Plan for the future aims to strengthen competitiveness

INEOS Phenol proposes to reduce labour cost by 30 per cent with a potential impact on 56 jobs at its Doel production site in Belgium. The decision is being taken due to the challenging market conditions. The proposal also provides for investments in process technology, energy efficiency and logistics.

A combination of unprecedented energy prices, high inflation and a cyclical slowdown have considerably weakened industrial demand for chemical products. End-users of phenol and acetone have substantially reduced their production. Customers are also facing increased competition and imports from suppliers from Asia.

Over the past 12 months, Europe's position has evolved from a net exporter of phenol and acetone derivatives to a net importer. According to analyst reports], the capacity utilisation rate of phenol and acetone plants across Europe fell to an average of 50% in 2023 - it averaged 80% in the period prior to the European gas crisis. In line with these developments production at the Doel plant has not restarted following the turnaround works of last autumn.

To secure the site's competitive position as Europe's largest producer, INEOS Phenol Belgium has developed a plan for a more cost-efficient organisation.

Hugo Piot, site manager of INEOS Phenol in Doel, said: "With this intended plan for the future, we are responding to the difficult market conditions in order to strengthen the competitive edge of the Antwerp site in global markets. The modified organisational structure makes us more agile to continue to offer competitive and quality services to our customers. We understand that the proposed reorganisation is hard on the employees and we will therefore make every possible effort to limit the number of redundancies. To this end, we will initiate social consultations as soon as possible."

At INEOS Phenol's Doel site, cumene is converted into phenol, acetone and AMS. These basic chemicals are processed into a very wide range of applications, particularly into the automotive, construction, electronics, textile and coatings industries. The INEOS plant is the largest producer of its kind, with an annual production of 680 000 tonnes.