Hundreds of jobs to go with Billingham Mitsubishi chemical plant closure

The government has "failed" hundreds of workers after the decision to close a chemical plant, a Labour MP said.

Stockton North MP Alex Cunningham said about 200 workers at the Mitsubishi Cassel site in Billingham faced losing their jobs.

The firm previously said factors including "rapidly escalating" gas prices meant the site was not viable.

The government said it had "acted swiftly" to provide support, but the closure was a "commercial decision".

Manufacturing at the site has taken place since 1930 and Mitsubishi Chemical took over operations in 2009.

The plant produces methacrylates, which are used in acrylic products and require large quantities of gas.

Consultations with staff begun in November, when the firm said it was a "very sad day for everyone associated with our business on Teesside".

At the time, it also blamed a downturn in the European economy caused by inflation and said weaker demand meant UK manufacturing was no longer viable.

It is understood workers have been told they will be made redundant once the site closes in the next 12 months.

Mr Cunningham said: "We know that energy costs have been crippling for many Teesside industries.

"Our short-sighted government, which has given some support, has failed to ensure businesses got the support they needed to get them through a challenging period despite repeated calls from myself and the industry for them to do something."

He said he "feared" for other companies on Teesside, which continued to "face challenging times", and the government needed to "help protect existing industries".

The Conservative Tees Valley Mayor Ben Houchen said he had been in talks with Mitsubishi and the government to try to save the plant, but they were unsuccessful.

He said: "Unfortunately, due to a range of external factors including rising gas prices, Mitsubishi has now decided that its site is no longer viable.

"This news is obviously devastating for all the workers involved and their families, and my heart goes out to each and every one of them."

Mr Houchen added he was ensuring support was in place for workers "to help them back into jobs, so the huge wealth of talent and expertise they hold is not lost".

A government spokesperson said: "We acted swiftly to provide businesses with unprecedented support to reduce their energy bills, including the Energy Bill Discount Scheme, as well as direct help for eligible energy-intensive industries like Mitsubishi's through additional price caps.

"While the closure of these works is, ultimately, a commercial decision for Mitsubishi Chemicals, we understand this will be a concerning time for their workers and we stand ready to support those affected via JobCentre Plus and its Rapid Response Service."

Mitsubishi Chemical was approached for comment but did not respond.

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