AGC Chemicals Europe announced July 13 it is entering into a consultation with employees and their representatives regarding a proposal to cease operations at its manufacturing plant at the Hillhouse Technology Enterprise Zone in Thornton Cleveleys, Lancashire. All roles at the site are affected by the proposal.

According to the company, no final decision has been made. The consultation period is expected to last at least 45 days, during which AGC Chemicals Europe said it will work with unions and employee representatives on matters including whether dismissals can be avoided or reduced and how to mitigate the impact on affected workers. The site currently employs approximately 190 employees and 18 agency staff.

In a press statement, the company said the proposal follows four consecutive years of financial losses at the site, citing a volatile and competitive market environment. The site produces specialist fluoropolymer materials, including fluorinated resins and fluoroelastomers, such as polytetrafluoroethylene (PTFE) and ethylene tetrafluoroethylene (ETFE). According to AGC Chemicals Europe, continued investment from parent company AGC Inc. and efforts by site employees were not sufficient to make the operation sustainable under current conditions.

If the proposal proceeds following the consultation, AGC Chemicals Europe said production is expected to cease by the end of 2026. The company said it remains committed to maintaining regulatory compliance, including environmental permit obligations and any required environmental monitoring, if a closure decision is taken.

The proposed closure comes as AGC Inc. continues to pursue growth in specialty materials elsewhere in its global portfolio. In May, the company announced that its fluorinated electrolyte polymer dispersion had been selected as an electrode material for a 5-megawatt-class polymer electrolyte membrane water electrolysis demonstration system jointly developed by Toyota Motor Corporation and Chiyoda Corporation at Toyota's Honsha Plant in Japan.