Lubrizol's overcapacity problem remains difficult to solve
author: Ann
2025-05-20
Lubrizol Corp. said recently that its French business has suspended plans to lay off about 100 people at its Rouen and Le Havre plants.
The restructuring is in response to a sharp drop in demand across Europe, which has led to a more than 30% drop in production and created excess capacity.
The proposed restructuring has caused tensions in northern France, where the company's business has a significant footprint.
Workers took industrial action when the company first announced the restructuring plan in February.
In early May, the additive company notified its works council and employees that it would end the consultation process on the planned restructuring.
Since the announcement of this restructuring project, the global supply chain environment has changed significantly, with uncertain macroeconomic conditions and pressure on raw material costs and availability.
Fabrice Jerinek, senior director of Lubrizol's additive business, said: "To ensure that the company's collective efforts are focused on navigating this rapidly evolving external environment and providing reliable service to our customers, we have decided to end consultation on the Rouen and Le Havre restructuring projects.
Fabrice Jerinek, senior operations director at Lubrizol Additives, said: Although the layoff plan has been temporarily shelved, the company still faces the prospect of overcapacity.
Nicolas Adam, general manager of Lubrizol France, added: Although these production sites are still facing problems of reduced production and overcapacity, we hope to improve this situation through our efforts and successfully solve these external challenges.
The restructuring is in response to a sharp drop in demand across Europe, which has led to a more than 30% drop in production and created excess capacity.
The proposed restructuring has caused tensions in northern France, where the company's business has a significant footprint.
Workers took industrial action when the company first announced the restructuring plan in February.
In early May, the additive company notified its works council and employees that it would end the consultation process on the planned restructuring.
Since the announcement of this restructuring project, the global supply chain environment has changed significantly, with uncertain macroeconomic conditions and pressure on raw material costs and availability.
Fabrice Jerinek, senior director of Lubrizol's additive business, said: "To ensure that the company's collective efforts are focused on navigating this rapidly evolving external environment and providing reliable service to our customers, we have decided to end consultation on the Rouen and Le Havre restructuring projects.
Fabrice Jerinek, senior operations director at Lubrizol Additives, said: Although the layoff plan has been temporarily shelved, the company still faces the prospect of overcapacity.
Nicolas Adam, general manager of Lubrizol France, added: Although these production sites are still facing problems of reduced production and overcapacity, we hope to improve this situation through our efforts and successfully solve these external challenges.
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