Grangemouth closure could cost more than 3,000 jobs – Scottish Business News

THE closure of Scotland’s only oil refinery could cost more than 3,000 jobs across the supply chain.

Representatives from Petroineos informed a Scottish Parliament committee that predictions indicate for every job eliminated in refining, seven positions will disappear in the supply chain. This would result in an additional 2,800 supply chain roles being lost, on top of the 400 positions expected to be eliminated at Grangemouth.

However, approximately 75 positions will remain at the location to manage the import and export operations following the refinery’s shutdown, which is expected to occur between April and June of next year.

The refinery stands as the sole facility in Scotland and is the oldest of six in the United Kingdom, providing nearly two-thirds of Scotland’s oil-based products.

The company, Petroineos – a partnership between PetroChina and Ineos – has stated that the refinery is encountering “significant challenges” due to a decrease in demand for essential fuels.

With newer Petroineos facilities worldwide, the company’s CEO Frank Demay stated that the company is “exploring more ways to adapt our business”.

“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,” Mr Demay said.

“That reality, aligned with the cost of maintaining a refinery built half a century ago, means we are exploring ways to adapt our business.”

Since 2011, Petroineos has poured almost £1 billion into keeping Grangemouth running, but this effort has led to a net loss of about £600 million.

The firm has admitted it is finding it harder and harder to keep up with competitors in the Middle East, Asia, and Africa.

In an unexpected development, Falkirk East MSP Michelle Thomson revealed to the Scottish Parliament that she had discussions with a possible buyer for the location, only a few hours after the news of its shutdown was shared.

Ms Thomson told the chamber: “I have had an approach by a person whom I believe to be serious with an appetite and a willingness to buy the Grangemouth refinery in its entirety including its jobs.

“I have had some brief, initial discussions and I believe this to be a serious proposition.

“However, there is clearly a great deal of work to be done and it is clearly not mine to sell.”

A non-disclosure agreement prevented Ms. Thomson from divulging any further information regarding the agreement, such as the reason the company has not submitted a proposal in the past year.

A Petroineos spokesperson said: “It’s nearly a year since Petroineos first signalled its intention to stop refining at Grangemouth so there’s been plenty of time for potential buyers to express an interest and we would have engaged seriously with any credible proposition.

“We have contacted Michelle Thomson MSP today, with a view to understanding her position.”