Unions concerned about secret sale of Limburg petrochemical firm Sabic

Trade unions are very concerned about the sale of the Limburg petrochemical firm Sabic to a German investment company. The investment company’s intentions are unclear, and the fear for the workers at the firm. There are also concerns about a domino effect on Chemelot after the closure of the nylon raw material factories by Fibrant and Vynova in October last year, L1 Nieuws reported.

“We knew nothing about it. We were caught off guard by the takeover,” Ed Leunissen of the trade union CNV told the broadcaster. “Are they going to reorganize, break up, and sell the company? Or do they have a long-term vision?” The union wants to sit down with the new owners in the very near future.

The Saudi Arabian Basic Industries Corporation (Sabic) acquired a large part of DSM’s petrochemical activities in 2002, making the Saudi company a major player in the Chemelot industrial park. On Thursday, most of Sabic’s activities at Chemelot transferred to the German investment company Aequita.

The sale of Sabic is also another blow for Chemelot, following the Fibrant and Vynova closures last year. High energy prices mean that the Netherlands’ heavy chemical industry can no longer compete effectively with other parts of the world. Companies at the Chemelot industrial plant in Geleen pay over 50 percent more for energy than companies in Germany, Belgium, or France. Energy prices in the United States are four times lower.

Chemelot’s position remains problematic, Professor Nils Kok of Maastricht University told the broadcaster. “There is increased competition from China and neighboring countries,” he said. “The companies [at Chemelot] are multinationals, not tied to a specific country. They look at where production is most efficient. Hydrogen is seen as a solution, but it requires a pipeline. That’s expensive and takes a long time. In the medium term, we would consider subsidies, but that’s not allowed without a reason. Europe must approve it.”

Chemelot directors have been warning about the Nehtelrands’ declining competitiveness for years. “If we don’t improve our competitiveness quickly, China, Russia, and America will overrun us,” current director Koos van Haasteren said in December 2024.