The global economic downturn combined with the fact it is the American company’s “oldest and least economic plant,” have led to the decision being made.
Consultations with trade union and staff representatives are to begin imminently, with the loss of 126 permanent and 75 contract positions.
Production has been scheduled to cease in the next two months.
Paul Dalton, site director, said: “The proposed closure of the pigment plant at Grimsby, after 60 years of operation, is a sad moment, not only for everyone directly affected, but also for the company and the local community with whom we have had a great relationship for many years. As always we will treat our associates fairly and will provide support through this difficult period.”
Describing it as a “symbolic plant,” Grimsby MP Austin Mitchell said: “This is disastrous news. We will have to see what we can do to persuade them to change their minds, but it will have been a big decision taken by a multi-national outside of this country.
“It is a surprising decision. It is and old plant, but still producing, and with the pound coming down it makes export so much more competitive.
“We now need to find out what the intentions are and have to bring in arrangements to get jobs for the workers, which is going to be difficult at the moment.”
Glyn Hughes, chief executive of Humber Chemical Focus, the public/private partnership that unites and steers the region’s industry, said: “It is a very sad day for what has been a flagship plant on the Humber for many, many decades. I know the team have worked extremely hard to improve their position, and despite their efforts it has been caught up in much bigger restructuring within the Huntsman Group.”
A ferric sulphate water treatment business, EA West, will continue to operate as a stand alone production unit on the Moody Lane site.
See tomorrow's Grimsby Telegraph for full reaction to this story.