Clariant to shut Horsforth/Leeds UK Production site - paper chemicals to be affected

As anticipated, Clariant has announced that it will shut its site in Horsforth/Leeds, UK. Over a number of years the site has not received investment from Switzerland despite a long track record of innovation and being at the core of supplying paper chemicals. In discussions with those affected, it is not clear where the production will be shifted but much is expected to go to shore up the (more expensive) Swiss operation in Muttenz. When decisions such as these are made, it is often more cost-effective to close sites in the UK where labour laws are liberal, compensation is lower and it is easier to carry out a closure. Moving production to a higher cost site in Switzerland to fill capacity does not appear to be a long-term recipe for success in paper chemicals.

The site at Horsforth was the main driver for the research, development, production and marketing of Optical Brightening Agents (OBAs, FWAs) world-wide. In a first move, Clariant closed its world-class OBA research and marketing team in the UK (see earlier blog). It has now decided to close the entire site, affecting OBA production and some other paper chemicals (eg products for strength, dye fixation, and the control of interfering substances).

The site in Leeds/Horsforth is designated a Textile, Leather and Paper site, although products from other businesses are manufactured there. Since Clariant's unsuccessful acquisition of BTP (British Tar Products) it has held onto a production site in Selby, UK, although this site has also been caught up in a cost-cutting closure announcement.

Clariant's first-half results were reported today and will be the subject of a separate blog.

What others are saying - See Yorkshire Post article; Clariant UK web site (nothing!).