AGC Chemicals Europe Ltd said it has begun a consultation process with employees and their representatives regarding the future of its manufacturing site at the Hillhouse Technology Enterprise Zone.
The company stressed that the closure is only a proposal at this stage and that no final decision has been made.
However, all roles at the site, around 175 jobs, could be affected if the plans go ahead.
AGC Chemicals Europe is part of the Japan-based AGC Group, one of the world’s largest manufacturers of glass, chemicals, electronics materials and advanced technologies.
The Thornton operation, formerly known as Asahi Glass Fluoropolymers, has been based at Hillhouse for decades and manufactures specialist fluoropolymer materials used across a range of industrial applications.
In a statement issued on Monday, July 13, AGC said the proposal had been made following “significant financial and operational challenges”, with the plant generating losses for the past four years.
The company said continued investment from parent company AGC Inc and the efforts of employees had failed to reverse the situation.
A spokesperson said: “This proposal has been made because the site has experienced significant financial and operational challenges, generating a loss for the past four years.
“Despite continued investment from AGC Inc and the hard work of Hillhouse employees, the situation is no longer sustainable in the context of a volatile and competitive market.”
The consultation process is expected to last at least 45 days.
During that period, AGC said it would work closely with trade unions and employee representatives to explore ways of avoiding or reducing job losses and mitigating the impact on staff.
The company said its immediate priority was supporting employees affected by the proposal.
If the closure plans are ultimately approved following consultation, production at the site would be expected to end by the close of 2026.
AGC also sought to reassure residents and stakeholders that it would continue to meet its environmental and regulatory responsibilities.
The company said that, if manufacturing ceases, it would maintain the staffing and monitoring required to comply with environmental permits and any other obligations.
A spokesperson added: “We appreciate these are difficult and uncertain times for our colleagues and we will seek to be informative, responsive and supportive through the consultation period.”
The Hillhouse site is one of the largest industrial locations on the Fylde coast and forms part of the wider chemicals and advanced manufacturing cluster at Thornton.
The announcement comes amid ongoing pressures facing energy-intensive manufacturers across the UK, including increased production costs and challenging global market conditions.
Further updates are expected as the consultation progresses.
