LB Group is still ‘fully committed’ to takeover of Hartlepool’s Venator Materials UK plant after redundancies confirmation
LB Group is still ‘fully committed’ to takeover of Hartlepool’s Venator Materials UK plant after redundancies confirmation.
The potential new owner of a chemical facility where scores of people have recently lost their jobs says it is still “fully committed” to closing the sale.
Materials UK, which has locations on the outskirts of town in Greatham and Wynyard, appointed administrators earlier this week following “sustained financial pressures and challenging market conditions” in the global titanium dioxide (TiO) manufacturing sector.
Two hundred and seventy-three employees were laid off across both sites, with an additional 232 employees retained “to assist in the administration process”.
The decision, characterised as “not one we have taken lightly” by Venator CEO Karen Askwith, came just days after the Chinese-based LB Group signed an Asset Purchase Agreement (APA) to purchase the Greatham manufacturing plant, subject to statutory processes.
The LB Group, a significant producer of titanium dioxide (TiO2) pigments, is now negotiating with Venator Materials UK’s administrators. Talks are expected to last months, and LG Group has stated that “there is no guarantee that successful completion will be achieved”.
However, an LB Group statement added: “LB Group remains fully committed to completing the APA transaction and intends to restart operations at Greatham in the future, investing in its capabilities and integrating it into our global production network as conditions permit.”
“The Asset Purchase Agreement reflects LB Group’s strategic commitment to supporting European TiO2 customers and expanding its global footprint.”
The company cherishes Greatham’s technical experience and production capabilities, and it welcomes the opportunity to expand its global portfolio with additional high-performance titanium dioxide products and boost its global competitiveness.”
One hundred and forty-seven employees have been laid off at Wynyard, with a further 126 losing their employment in Greatham.
Administrator Alvarez & Marsal aims to keep the Greatham facilities in “idle mode” until a deal is hopefully reached.
The Wynyard offices will continue to give support to the company and the entire Venator group.
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