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FINANCIAL NEWS
Saudi SABIC to discharge 1,050 employees in Europe
20 Apr 2013
(MENAFN) Saudi Basic Industries (SABIC) announced that due to the global economic uncertainties, the company plans to lay off nearly 1,050 employees in Europe, reported Arabian Business.
SABIC, which also plans to shut down some operations, said that two thirds of the job reductions will affect SABIC employees, while the remaining third will affect contract staff.
The world’s biggest petrochemicals group attributed the planned move to less consumer spending on houses, cars and appliances and a decline in investment on infrastructure in Europe that lowered demand and tightened margins.
The company, which depends a lot on gas to power its plastics, fertilizer and chemicals businesses, is planning to use the much cheaper supplies in the US, where a shale gas boom has reduced prices to half levels seen in Europe and has helped convert the country’s economic outlook by attracting gas-intensive industries like petrochemicals.
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