Grangemouth will close in the summer of 2025, resulting in the loss of 400 jobs. Unite the Union has called the closure ‘an industrial vandalism ‘.
Petroineos, an oil and gas company, said that the UK facility, which represents 14% of UK refining capacity was no longer competitive with sites in Asia and Africa.
The company, a joint-venture between Ineos, PetroChina, and PetroChina, added that Grangemouth will be converted into an import terminal for petrol, diesel aviation fuel, and kerosene. The company would need to reduce its workforce from 475 employees to less than 100.
Last November, news of Grangemouth’s closure was announced. However, union leaders hoped that the facility would remain open for longer so they could establish a green alternative on the site.
The Scottish and UK governments have unveiled a three-point plan to address the future of this site.
Frank Demay said that demand for the fuels produced at Grangemouth had already begun to fall. With a ban expected to be implemented on new petrol and Diesel cars within the next decade we predict a further shrinkage of the market.
This reality, coupled with the costs of maintaining a refining plant built 50 years ago, has us exploring ways to adapt. Grangemouth is expected to be operational as a national hub for finished fuels by Q2 of next year.
Unite the Union called the closing of the refinery an “act industrial vandalism”. General Secretary Sharon Graham stated: “This dedicated staff has been letdown by PetroIneos, and by politicians in Westminster and Holyrood that have failed to ensure production until other jobs are available.”
The Labour government has one last chance to prove that it is on the side workers and communities. “The road to net zero can’t be paid for by workers’ jobs.”
About 300 redundancies will occur within three months of the plant closing, while 100 others will be retained for six to twelve months to assist in decommissioning and building the import business.
Michelle Thomson, MSP for Falkirk East, has called for Grangemouth to receive similar support as that given earlier this week Tata Steel in order to ease the transition towards a greener economy.
The UK and Scottish governments, in order to achieve this, have each allocated PS100m for a plan of investment aimed at supporting local communities and their workers and investing in energy projects in the area in order to create new growth opportunities in the region. A part of the investment will go to the Falkirk and Grangemouth Growth deal, which according to ministers will generate over PS628,000,000 in economic benefits over the next thirty years. It will also create 1,660 new jobs throughout the Falkirk council area.
The UK and Scottish governments promised to offer tailored support for affected workers in order to help them find new jobs. The UK and Scottish governments are also evaluating options for a long-term industry on the refinery’s site. These include low-carbon hydrogen, clean electronic fuels, and sustainable aviation gasoline.
Ed Milliband, the UK energy minister, said that both governments are working together to protect jobs and investment in the region.
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