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By
Reuters
Published
Jul 8, 2009
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Croda to shut Wilton manufacturing site

By
Reuters
Published
Jul 8, 2009

LONDON, July 8 (Reuters) - Britain's Croda (CRDA.L) is to close its Wilton manufacturing site in North East England following a decision by Dow Chemical (DOW.N) to close an adjoining facility which produced a key raw material.



The manufacturer of ingredients for cosmetics and personal care products said on Wednesday 8 July it will enter into consultations over jobs with the site's 125 employees within the next two weeks.

It expects to pay about 13 million pounds ($21.05 million) in cash costs and an about 5 million pounds write down for the closure, which will be during 2010.

It has taken the decision because Dow is the only UK manufacturer of Ethylene Oxide, a critical raw material, and it would be expensive for it to transport it from the continent.

It said it would move production to other sites within the group where the chemical is more easily accessible, and continue to supply its global customer base in the normal way.

The site is one of several that the company has in the UK.

(Reporting by Ben Deighton; Editing by John Bowker)

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