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 near Falkirk, 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.
Dozens of workers in Fife are employed at the site.
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.”
Concern for Fife jobs
Fife Council’s spokesperson for finance, economy and strategic planning said the impact of the closure will be felt in the Kingdom.
He said many of the plant’s workers resided in Fife, while small and medium sized businesses will also be impacted.
“Many workers at Grangemouth will come from Fife. This news has come out of the blue.
“We need to see details on their plans. It’s a site with highly skilled jobs. A fuel storage and distribution centre is an entirely different business.
“Workers will be thinking ‘what does this mean for us?’
“There will be a lot of small and medium sized businesses in Fife which are part of the supply chain into Grangemouth.”
Changes at Grangemouth
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.”
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.”
Derek Thomson, Unite’s Scottish secretary, added: “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