THE Scottish Government has pledged to do everything it can to help affected workers after Petroineos announced almost 200 jobs would be cut at its Grangemouth refinery.
Bosses at the plant, which was established almost a century ago, said they will restructure operations in the wake of falling demand for fuel.
Two production plants at the site, which have not been operational since the lockdown in March, are being mothballed, the company said.
It said the move will reduce future operating costs at the site.
Bosses at Petroineos - a joint venture between PetroChina International London and Ineos - believe the company can have "a viable longer-term business" employing up to 450 workers at the site.
It currently has 637 full-time staff there.
A company spokesperson said the changes come after 30 years of demand for fuel falling, with cars and other vehicles becoming more efficient and more people opting for electric or hybrid motors.
They added: "Covid has really taken that over a cliff edge."
READ MORE: 'Anti-science drivel': Douglas Ross accused of climate change denial
Shutting down the two affected parts of the Grangemouth refinery - the Crude Distillation Unit 1 and the Fluidised Catalytic Cracker Unit (FCCU) - will have the impact of reducing CO2 emissions there by 500,000 tonnes a year.
The refinery at Grangemouth has been operating since 1924 and was one of the first to transform crude oil in the UK.
It currently produces a range of fuels including petrol, diesel, kerosene, LPG and jet fuel.
Franck Demay, chief executive of Petroineos Refining, said: "As a national critical infrastructure it is vital we retain a productive capacity of fuels in Scotland.
"For almost a century the Grangemouth refinery has reliably produced high quality fuels for the domestic market and for export.
"We firmly believe that only by taking action now will we preserve one of Scotland's last large manufacturing sites and a significant contributor to the Scottish economy."
Petroineos is now entering into a statutory consultation period with workers and trades unions.
Scotland's Infrastructure Secretary Michael Matheson vowed the Scottish Government will do everything it could to help affected employees.
He said: "This announcement will be devastating news for those affected and their families at what is already an anxious time.
"The Scottish Government will do everything it can to support those whose jobs are at risk of redundancy at Grangemouth and we will provide support through our Partnership Action for Continuing Employment (PACE) initiative.
READ MORE: Mossmorran flaring emissions 'as bad as flying 9000 people to New York'
"Through providing skills development and employability support, PACE aims to minimise the time individuals affected by redundancy are out of work."
He added: "The Scottish Government recognises that the oil and gas sector has been significantly affected by the impact of the Covid-19 pandemic and its damaging economic consequences, and it is important that Grangemouth has a sustainable future.
"This is an extremely difficult time for most businesses in Scotland and we will do all that we can, within the powers available to us, to help key sectors of our economy recover.
"We remain committed to working with the energy industry to help them respond to the challenges of Covid-19 whilst furthering our decarbonisation goals as part of a just transition, and we are in regular contact with businesses and trade unions in sectors exposed to the unprecedented economic challenges Covid-19 has triggered."
Angus MacDonald, the SNP MSP for Falkirk East, added: "I will do all I can in my position to ensure that this pathway remains clear, and that new opportunities for employment are explored and found in the very near future.
"As ever, advice and assistance is available to anyone affected by today’s announcement from my office and from other partners working hard to mitigate the impacts of these potential job losses on the workers who stand to be most affected.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel