Prior to now, owners Petroineos claimed that pressures from the worldwide market had caused the Grangemouth plant to face “significant challenges” and that it was unable to compete with more advanced and productive locations in the Middle East, Asia, and Africa.
The company plans to convert the location into a fuels import terminal, and it anticipates cutting back on workforce from 475 to 75.
65% of Scotland’s oil products, including gasoline and diesel, are currently supplied by Grangemouth, the oldest of the six refineries in the United Kingdom.
When Petroineos first unveiled its plan last year, union officials thought it could stay open for a little while longer to give time for the establishment of a green alternative.
Nevertheless, the plant is reportedly losing about $500,000 every day on average; since 2011, the corporation has lost over $775 million, even though it has spent over $1.2 billion to keep the refinery operating safely.
“Petroineos has today announced its intention to cease refinery operations at Grangemouth and transition to a finished fuels import terminal and distribution hub during the second quarter of 2025, subject to employee consultation,” the company stated in an update on Thursday.
“INEOS O&P UK and INEOS FPS (Forties Pipeline System), two of INEOS’s Grangemouth-based businesses, will carry on as usual, providing high-quality.
