Trade union Unite has vowed to leave “no stone unturned” in a bid to save jobs at Grangemouth oil refinery, which is due to cease operations in 2025.
Petroineos, which owns the plant at Grangemouth, said it will become a fuel import terminal.
The company said in a statement: “The timescale for any operational change has not yet been determined but the work will take around 18 months to complete and the refinery is therefore expected to continue operating until spring 2025.”
The refinery is responsible for around 4% of Scotland’s GDP and directly employs 550 staff.
It holds between 100,000 and 200,000 tonnes of fuel on site. Its wholesale business can load 600 trucks a day.
Trade union Unite has said it will fight to save jobs at Grangemouth.
“This proposal clearly raises concerns for the livelihoods of our members but also poses major questions over energy supply and security going forward,” Sharon Graham, the union’s general secretary, said.
“Unite will leave no stone unturned in the fight for jobs and will hold politicians to account for their actions.”
Grangemouth to cease
Franck Demay, chief executive of Petroineos Refining, said the Grangemouth announcement does not change anything at the refinery currently.
He said: “As the energy transition gathers pace, this is a necessary step in adapting our business to reflect the decline in demand for the type of fuels we produce.
“As a prudent operator, we must plan accordingly but the precise timeline for implementing any change has yet to be determined.
“This is the start of a journey to transform our operation from one that manufactures fuel products, into a business that imports finished fuel products for onward distribution to customers.
“Throughout this process, our focus will remain on the safe production and reliable supply of high-quality fuels to our customers in Scotland, the north of England, and Northern Ireland.
“As we start to make this investment in preparing for a future transformation, we are equally committed to a regular programme of engagement with our colleagues about the changes we are making to our business.”
The firm is also currently assessing a number of green opportunities for the site, it has said, including a bio-refinery.
‘Devastating’ blow for economy
The Scottish Tories described the situation as “devastating” for Grangemouth refinery staff and a “hammer blow” for the national and local economies.
Douglas Lumsden, the party’s net zero spokesman, said the “hostile attitude” shown by the Scottish Government and the UK Labour Party towards oil and gas “will have been a factor” in the decision, although it is unclear if this is the case.
“They all fail to recognise the need for oil and gas – such as the refinery at Grangemouth – to be part of Scotland and the UK’s energy mix for years to come,” he said.
“Instead, the highly skilled workforce at Grangemouth have been delivered the worst possible news at a difficult time.
“The SNP-Green Government must act now.”
Derek Thomson, Unite’s Scottish secretary, said: “Unite continues to engage with Petroineos, and we urge other stakeholders such as the Scottish and UK governments to do the same due to the implications that this proposal will have for the economies of the devolved and reserved administrations.
“Every option must be on the table in order to secure the hundreds of highly skilled jobs based at the Grangemouth complex for the long-term.”
Conversation