SABIC Innovative Plastics has announced that it will close its global headquarters in the Berkshires next year as part of a plan to consolidate in Houston, Texas.

Officials declined to say how many local jobs would be transferred or eliminated.

The company employs about 300 people in Pittsfield, including the plastics division and the separate Polymer Processing Development Center, which SABIC said it would evaluate.

In a prepared release, the Saudi-based company on Thursday said it "expects to complete the majority of role relocations" by mid-2016.

"Exiting the Pittsfield site was a logical yet very difficult business decision knowing the important role our business and people have played in this community over the years," said Yousef Al-Benyan, vice chairman and acting CEO, in the release. "As SABIC continues to expand in the Americas, we need many of the talented Pittsfield employees to be part of our strong regional team. We are committed to a smooth transition for our people and look forward to welcoming many of them to our Greater Houston area office."

State and local officials agreed the announcement was a blow to the local economy.

"I'm shocked," said state Sen. Benjamin B. Downing. "I understand they are obligated to make their decisions based on their global strategies, and the cold comfort is that it had nothing to do with what we have to offer in Pittsfield. But that doesn't help the affected families."

Downing said his staff would be working to be sure the resources would be available to support the needs of the families of those who wind up losing their jobs.

He said he inquired with SABIC officials Thursday whether there was anything that could be done to retain some of the operation in the area. But given the strategic goals of the company, he said, there is nothing that could be done.

"It's going to have an impact on hospitals, schools, the housing market and the community," Downing added. "It is really very unfortunate."

Pittsfield Mayor Daniel L. Bianchi said he had no advance warning about the move.

"I understand it was a corporate decision — probably made halfway around the world," he said. "This is a company that goes back a long way in Pittsfield. Some of those employees grew up here, so this is not good."

Bianchi added that his office has been in touch with the state and federal legislative delegations to be sure the resources are in place to handle the needs of the displaced workers.

"Many of these employees are highly skilled and we hope that by supporting the other advanced manufacturing firms in the area, new opportunities will open up to allow those workers to continue to be employed locally."

"It was definitely disturbing to hear," said state Rep. Tricia Farley-Bouvier. "Obviously the first concern is for the employees and their families. We want to support them as much as possible, but the ripple effect will definitely be felt."

She noted that the closing of what was once GE Plastics "marks the end of an era. But the commonweath and the Pittsfield area have a lot of potential in the advanced manufacturing sector. I have a lot of confidence in that."

"It's a tough day in the Berkshires," said Jonathan Butler, president of the Berkshire Chamber of Commerce. "It is devastating news — the loss of hundreds of jobs in the region. So we'll be working with our partners immediately to find a way for some of the affected employees to be able to find opportunities here. Keeping families in the Berkshires is a major priority for us."

He noted that aside from the loss of jobs, SABIC employees and the company have been generous charitable contributors of both volunteer hours and money in the community.

"In the Berkshires they are a key employer, so this is major news and it is challenging news," Butler added.

SABIC Innovative Plastics is one of the largest manufacturers of polycarbonates in the world. It purchased the former GE Plastics in 2007 for $11.6 billion. GE Plastics had been in Pittsfield for more than 73 years, eventually developing high-performance plastic materials used in a variety of products, including riot shields, astronaut helmets, CDs and stadium seating.

At that time, SABIC officials told The Eagle that the intention was to retain local employees — there were about 450 then — and to leave GE's U.S. plastics operations largely intact.

The Houston area, where SABIC already has a presence, is the largest center of the petrochemical industry in this hemisphere, and SABIC is looking to make further investments in the region surrounding Houston, making it a central hub for SABIC to serve its customers in both North and South America, according to Jodi Kennedy, SABIC's director of corporate communications in the Americas.

"We are committed to our business interests in the Americas and the growth of our operations in Houston," she said.

She noted that once corporate officials have completed their analysis of the need for the various Pittsfield operations in Houston, employees would be informed of their transitions.

"We'll work as quickly as possible to notify our people, but we also want to be as thorough as we can in determining our needs for further growth in the Americas," Kennedy said.

 

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