About 400 jobs will be lost at Grangemouth, Scotland’s only oil refinery, which is to close by the summer of 2025. Unite the Union called the shutdown ‘an act of industrial vandalism’.
Oil and gas firm Petroineos said the facility, which accounts for 14% of the UK’s refining capacity, was no longer able to compete with sites in Asia, Africa and the Middle East.
The company – a joint venture between Ineos and PetroChina – added that Grangemouth would be converted into a terminal for importing petrol, diesel, aviation fuel and kerosene. This, however, would require a workforce of fewer than 100 employees compared with the current 475.
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News of Grangemouth’s likely closure emerged last November, but union leaders had hoped the facility could remain open longer to provide time for a green alternative to be established at the site.
First minister John Swinney said he was “deeply disappointed” at the news, while a joint three-point plan was unveiled by the Scottish and UK governments regarding the future of the site.
Frank Demay, the company’s CEO, said: “Demand for key fuels we produce at Grangemouth has already started to decline and, with a ban on new petrol and diesel cars due to come into force within the next decade, we foresee that the market for those fuels will shrink further.
“That reality, aligned with the cost of maintaining a refinery built half a century ago, means we are exploring ways to adapt our business. We currently expect Grangemouth to be ready to operate as a national distribution hub for finished fuels in Q2 next year.”
Unite the Union described the closure of the refinery as an “act of industrial vandalism”. General secretary Sharon Graham said: “This dedicated workforce has been let down by PetroIneos and by the politicians in Westminster and Holyrood who have failed to guarantee production until alternative jobs are in place.
“This is now the last chance for this Labour government to show whether its really on the side of workers and communities. The road to net zero cannot be paid for with workers’ jobs.”
Up to about 300 of the redundancies are expected to occur in the three months after the plant closes, with 100 retained for between six to 12 months to help decommission and to build up the import business.
Michelle Thomson, the Falkirk East MSP, called for similar support for Grangemouth as that provided for Tata Steel earlier this week, to help ease the green transition.
To that end, the UK and Scottish governments have allocated £100 million for an investment plan aimed at supporting the community and its workers, and investing in local energy projects to create new opportunities for growth in the region. Part of this will be directed at the Falkirk & Grangemouth Growth Deal which ministers forecast will deliver over £628 million in economic benefits and create 1,660 jobs across the Falkirk Council area over the next 30 years.
The UK and Scottish governments have promised to provide tailored support that will help affected workers in finding new employment. They also are evaluating options – under Project Willow – for a new long-term industry at the refinery site, including low carbon hydrogen, clean eFuels and sustainable aviation fuels.
The UK government energy secretary Ed Milliband said the two governments were working to protect jobs and invest in the area.
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