Grangemouth, Scotland – Scotland’s only refinery, is set to close in 2025, resulting in the loss of 400 jobs, according to operator Petroineos.
The 100-year-old refinery, one of the UK’s oldest, will be transformed into a fuel import terminal as part of the company’s restructuring plans.
Production at the site will cease in the second quarter of 2025, following an employee consultation, Petroineos confirmed.
This announcement follows the company’s decision last November to shut down the refinery, citing ongoing economic challenges. The closure has drawn criticism from trade unions and political figures alike.
UK Energy Secretary Ed Miliband expressed disappointment over the move, saying, “It is deeply disappointing that Petroineos have confirmed their previous decision to close Grangemouth oil refinery.”
Closure of Scotland’s Only Refinery Spells Uncertainty for 400 Workers
The transition will see the workforce at Grangemouth reduced from 475 employees to around 75 over the next two years. Petroineos, a joint venture between PetroChina International London and British chemicals firm INEOS Group, attributed the decision to the site’s inability to compete with larger, more efficient refineries in regions like the Middle East, Asia, and Africa, where the newly opened Dangote Refinery has further strained competition.
The company revealed that Grangemouth has incurred significant financial losses, with investments of $1.2 billion since 2011 yielding a return of over $775 million in losses. Currently, the plant is losing approximately $500,000 daily, with an expected annual loss of $200 million in 2024. Maintaining the refinery’s operations would require significant capital expenditures to keep it compliant with licensing requirements.
Trade unions and local politicians have opposed the closure, pushing for continued production until a low-carbon alternative could be found for the site’s future. Unite, the union representing workers at Grangemouth, described the decision as “industrial vandalism.”
Derek Thomson, Unite’s Scottish secretary, stated, “The complex is critical to the nation’s manufacturing base and energy security.”
In response, the UK and Scottish governments have jointly announced a £100 million ($130 million) support package aimed at assisting displaced workers and investing in local energy projects. The funds will provide career support and boost the area’s industrial future following the refinery’s closure.
“We are announcing a package of investment to help the workforce find good, alternative jobs, invest in the community, and serve a viable industrial future for the Grangemouth site,” Miliband said.
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