INEOS Styrolution will close its Sarnia site by June 2026, the company announced Tuesday.
“This difficult business decision to permanently close our Sarnia site was made following a lengthy evaluation process and is based on the economics of the facility within a wider industry context,” CEO Steve Harrington said in a news release. “The long-term prospects for the Sarnia site have worsened to the point that it is no longer an economically viable operating asset.
The facility, which employs about 80 people along with a large number of contractors, has been temporarily shut down since April, following outcry from Aamjiwnaang First Nation officials flagging ‘extremely high’ benzene levels.
The issue made national headlines and prompted Chief Chris Plain to declare a State of Emergency last month.
“The production site in Sarnia is currently shut down due to recent orders from regulatory authorities that forced us to declare force majeure,” INEOS added. “We are currently assessing what is required to restart the site—a process that could take approximately six months.”
Ontario’s environment ministry suspended the Environmental Compliance Approval (ECA) for INEOS in May, citing benzene readings that “continue to be above acceptable levels.”
The company, however, maintains it did not breach its emissions limit for benzene, and called the government-issued compliance timelines ‘unrealistic.’
“Our decision to permanently close the Sarnia site by June 2026 is irrespective of the current situation. The economic reality is that we have made significant investments in the Sarnia site for many years to ensure safe and reliable operations,” Harrington added. “Additional large investments that are unrelated to the potential costs of restarting operations would be necessary in the near future. Such investments would be economically impractical given today’s challenging industry environment.”
INEOS Styrolution understands the uncertainty the current temporary shutdown has presented for its Sarnia stakeholders and appreciates the patience of its employees, contractors, customers, and partners, the company added.
“Looking ahead, the Company will work closely with all necessary parties to complete an orderly wind-down process and a permanent closure of the site in a safe, responsible, and compliant manner. Aligned with our core value of “Valuing and Respecting People,” transition support will be provided to impacted employees.
“The Company is fully committed to the styrenics business and will continue to serve customers across the globe with its leading portfolio of differentiated, high-performing products and innovative solutions that enable customer growth.”
The Journal has reached out to Chief Chris Plain for comment.