Just over 1000 jobs across Europe will be affected by SABIC's announcement.
With more than 100 posts affected on Teesside, the area's Manufacturing Director, Mike Ducker, told ITV News difficult decisions had to be made:
Mr Ducker said the company had begun a consultation process with staff.
He also confirmed that SABIC would attempt to redeploy as many people as possible and provide external support to help workers find other jobs.
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