Croda closes UK factory due to loss of raw material supply

By Katie Bird

- Last updated on GMT

Related tags: Dow chemical company, Croda

Croda is closing a production plant in Wilton, UK, as its main raw material supplier Dow has stopped production at the site.

The plant manufactured a number of products for use in personal care, home care and industry specialities but was heavily reliant on ethylene oxide as a raw material.

Production at site not tenable

Dow is the only producer of ethylene oxide, so its decision to close its production facility has forced Croda to relocate production, explained Croda spokesperson Charlie Armitstead.

“Now Dow has decided to close its ethylene oxide plant, our operations at the site are no longer tenable,”​ Armitstead told Cosmetics Design.

Production of these ingredients will be shifted to sites outside of the UK and the company will continue to serve its customers which, according to Armistead are mainly global.

The company has entered into a three month consultation period with the 125 employees of the factory.

Efforts will be made to relocate them within Croda’s UK operations or redundancy packages will be offered, explained Armitstead.

The closure of the Wilton facility was uniquely related to the interruption of the raw material supply and no other plant closures are imminent, he added.

Dow shifts to speciality chemicals

On Dow’s side the closure was one of a sweep of shutdowns on both sides of the Atlantic that see the company shift its focus towards speciality chemicals – a move related to the purchase of Rohm and Haas back in April of this year.

Andrew N Liveris, Dow Chairman and chief executive officer said “we continue to take quick and aggressive action to right-size our manufacturing footprint, particularly in our basics portfolio”.

He added, “These actions are also aligned with our strategic transformation, which focuses on preferentially investing growth in our performance and advanced materials portfolios.”

Related topics: Business & Financial

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