Grangemouth refinery confirmed to close in first half of next year
Operators Petroineos confirmed the move to staff at the site on Thursday morning
Last updated 12th Sep 2024
Scotland's only oil refinery will close in the second quarter of 2025 with the loss of 400 jobs, it has been confirmed.
Petroineos, the owners of the Grangemouth plant, confirmed the move to staff at the site on Thursday.
It will now become an import only terminal, with the number of staff at the site expected to fall from 475 at present to 75 over the next two years.
Petroineos originally announced plans to switch the site to import only in October 2023.
Grangemouth is the oldest of the UK's six refineries and currently supplies 65% of Scotland's oil products, including petrol and diesel.
But Petroineos said last year that the ageing site "faces significant challenges due to global market pressures and the energy transition" - with the site said to have had average daily losses of 500,000 US dollars (£380,000) a day over the last week.
In a statement on Thursday, the company confirmed: "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 consultation with employees.
"The Ineos businesses at Grangemouth, namely Ineos O&P UK and Ineos FPS (Forties Pipeline System), will continue as normal delivering high quality services and products to our customers and are largely unaffected by this change.
"We wish to assure our customers, suppliers and other stakeholders that it is 'business as usual' for the Ineos businesses at Grangemouth.
"Ineos Grangemouth remains committed to a long-term, successful future for the site, which includes the commitment to deliver net zero by 2045."