A CHEMICAL plant is to shut in Runcorn because of a fall in the demand for plastic, it was announced today.

INEOS ChlorVinyls has decided to close three plants altogether, following an internal review of the prolonged economic downturn on European market demand.

The company says no jobs will be lost as the 130 employees affected will be offered alternative roles at the Runcorn site, which employs 1,300 workers.

The VCM plant in Runcorn is also being changed to make a different product, EDC intermediate for internal use, which the company says will strengthen their chlorine business in the town.

Chris Tane, Chief executive officer, said: "We are taking these measures in light of current and expected economic conditions impacting demand across Europe.

“We are confident these measures, along with other ongoing improvement initiatives, will help secure our business in the long term by improving profitability and cashflow during these very difficult times."

As demand for PVC in particular continues to be very weak, the company says it needs to address its current over capacity in chlorine, VCM and PVC.

As a result, INEOS ChlorVinyls has decided to discontinue production from three of its plants.

The company will focus all UK PVC production at its Newton Aycliffe Site, which will facilitate closure of its small scale PVC unit at Runcorn Site.

In Germany, the company will bring forward the closure of its mercury chlorine cellroom at Wilhelmshaven Site.

The company expects to achieve these changes without involuntary redundancies and employees and their representatives will be kept fully informed as matters progress.