Lubrizol’s French business unit has put the brakes on cutting around 100 jobs at its facilities in Rouen and Le Havre, the company said last week.
The restructuring was in response to a sharp decline in demand across Europe, which resulted in production volumes falling by more than 30% and leaving excess capacity.
The proposed restructuring has sparked tensions in northern France, where the company’s operations have a significant footprint. Workers took industrial action in February, when it was first announced.
At the start of May, the additive company notified its works councils and staff members that it was ending the consultation process for the planned reorganization.
Since the announcement of this restructuring project, the global supply chain environment has changed significantly with an uncertain macroeconomic landscape, as well as pressures on raw material cost and availability. This environment has a considerable impact on the chemical industry and the customers it serves, a Lubrizol spokesperson told Lube Report.
“To ensure the company’s collective efforts are focused on navigating this rapidly evolving external environment and reliably serving our customers, we have decided to end the consultation on the Rouen and Le Havre reorganization project,” said Fabrice Jerinek, senior director of operations at Lubrizol Additives.
While the job cuts are off the table for now, the company still faces the prospect of overcapacity.
“While the challenge of declining volumes and overcapacity at these sites remain, we hope that by working to restore a productive work environment, we will navigate these external challenges successfully,” added Nicolas Adam, Lubrizol France’s general manager.