Grangemouth refinery workers given redundancy letters ahead of closure

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A Labour MP has warned the closure of the Grangemouth refinery will have “devastating consequences” not only for this area but Scotland as a whole.

His comments come as the first redundancy letters have been sent to staff at the Petroineos-run facility.

It was announced last year that the refinery would shut and transition into being an import terminal as the owners reported massive losses – around £383,000 per day.

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Despite a campaign by workers to keep the facility open, it is understood that the majority of workers have agreed voluntary redundancy deals, with job losses to be spread out over the next 18 months.

Ineos anounced the closure of the ethanol plant in Grangemouth last September. Pic: Michael GillenIneos anounced the closure of the ethanol plant in Grangemouth last September. Pic: Michael Gillen
Ineos anounced the closure of the ethanol plant in Grangemouth last September. Pic: Michael Gillen

The site currently employs around 500 people and less than 100 will remain employed.

Grangemouth MP Brian Leishman said his “worst fears have come to pass” with news of the redundancy letters and he criticised his own party/

He said: “Despite promises made during the election, the Labour government has not moved quickly enough to secure a future for the refinery.

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“I always said the findings of Project Willow will not be ready anywhere near quickly enough before jobs are lost.

“The complacency shown by both the UK and Scottish governments has been appalling.

“This closure will have devastating consequences with the effects reverberating around the whole of Scotland.

“Grangemouth refinery has been a cornerstone of the country’s industrial economy and the government should have stepped in to manage its transition with strategic investment that could have allowed it to play a leading role in the UK’s clean energy transition.

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“What is happening is the opposite of a ‘just transition’ to greener alternatives. Jobs have been lost, instead of saved.

“Communities in the area will be impoverished, instead of being brought along.

“This is an opportunity missed and a promise broken by party leadership.”

Unite general secretary Sharon Graham called the closure plans “a national disgrace”, adding that the closure was a “needless act of industrial vandalism” by Petroineos.

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She said; “There is a clear plan for the future of Grangemouth in place. Yet the UK and Scottish governments are missing in action.

“Just last week the UK government announced the expansion of Heathrow and said that sustainable air fuel (SAF) will be needed. Well Grangemouth can produce SAF – where is the joined up thinking? It is clear the company is acting in the national interest in China. Who is acting in Britain's interest - who has got Britain's back?

“This the moment for the government to lead and stand up to Petroinoes in the national interest. Petroinoes must allow the transition to SAF and biofuels. If the company refuses the government should be the investor of first resort. There will be 3500 per cent increase in SAF demand. The market is there.

“Today's announcement will not deter us. We will fight for the future of the refinery and the associated jobs.''

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A spokesman for Petroineos said: “From Q2 this year, Grangemouth will be ready to operate as a national fuel distribution hub that ensures Scotland’s supply of finished fuels is protected.

“The process of safely transitioning the site from a refinery into an import terminal is under way and will continue over a number of months.

“Fully winding down and dismantling the refinery is anticipated to take around five years in total, so the new terminal business will operate in parallel with this process.”

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