Today we announced to the Works Council and associates of our resins plant in Hernani, Spain that we intend to close the facility later this summer.
This action is driven primarily by declining demand for powder and flake phenolic resin products in the region, as key customer demand has shifted to Asia and specifically, China. We can more efficiently and effectively serve our European and other customers from our sites in Iserlohn, Germany and Solbiate, Italy. We plan to shift production from the Hernani site to these plant locations over the coming months.
We will be providing all affected workers with an appropriate social plan including severance, outplacement assistance and other support. In addition, some site associates may be offered other opportunities within Hexion. We are working with site management on production transfer and closure actions.
Please join me in supporting the Hernani site and its people as we work through this process.