AGC said the facility has faced significant financial and operational challenges and has generated losses for the past four years. Despite continued investment from parent company AGC Inc. and efforts by employees, the company said the operation is no longer sustainable in a volatile and competitive market.

“Our immediate focus is the people who are affected, and to begin a meaningful consultation process,” the company said. “AGC Chemicals Europe, Ltd. will work closely with unions and employee representatives with a view to seeking their agreement on various matters, including how we might avoid or reduce dismissals and mitigate the impact for employees.”

The Hillhouse operation manufactures specialty fluoropolymer materials for applications across multiple industries. AGC acquired the facility from ICI in 1999, although fluoropolymer manufacturing at the site dates to the 1950s.

AGC said it would remain responsible for the facility and its regulatory requirements if manufacturing ends. The company said it would retain the personnel needed to comply with environmental permits and conduct any required environmental monitoring.

Separately, Wyre Council reports that a multiagency investigation is examining potential historical contamination associated with PFOA use at the former ICI site, now operated by AGC, between the 1950s and 2012. The council said the chemical’s use complied with the facility’s permit and U.K. legislation in effect at the time. Its investigation page, last updated July 9, includes soil- and produce-sampling reports and states that a health review found no evidence linking kidney cancer cases to environmental contamination or proximity to the facility.

The Guardian reported that more than 90 residents had expressed interest in potential legal action related to local PFOA contamination. The newspaper also reported that soil and produce testing led to precautions for homegrown food and the closure of two nearby allotment sites. AGC told the publication that it would not comment on individual allegations and cited the multiagency health review’s finding that there was no statistically significant cancer cluster or indicated link to measured environmental levels. The company has not identified the investigation or potential claims as reasons for the proposed production shutdown.