Grangemouth refinery staff receive redundancy letters as closure looms

Redundancy letters have been sent to staff at the Grangemouth refinery as closure looms, the PA news agency understands.

It was announced last year that the central Scotland facility would close and transition into being an import terminal as owners Petroineos reported massive losses.

The shift is expected to keep around 65 of the roughly 500 jobs on the site and redundancy letters have begun being handed to staff.

It is understood only a small number of redundancies are mandatory.

Sharon Graham, general secretary of trade union Unite, said the closure is a “national disgrace” and a “needless act of industrial vandalism”.

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

She claimed Grangemouth could be used to produce sustainable aviation fuel.

“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?” she said.

“This the moment for the Government to lead and stand up to Petroineos in the national interest. Petroineos must allow the transition to SAF and biofuels.

“If the company refuses, the Government should be the investor of first resort. There will be 3,500% 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.”

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.”

Scottish Deputy First Minister Kate Forbes described the news as “deeply regrettable”, adding: “The Scottish Government believes that refining at Grangemouth should continue, and a premature closure of the refinery is fundamentally short-sighted and detrimental to the transition to net zero.

“We stand ready to support everyone impacted and have announced dedicated skills support for those facing redundancy.

“We will continue to do everything we can, within our limited powers, to secure a long-term future for Grangemouth.

“However, the UK Government has so far failed to live up to its commitments or offer any assurances about the future of Grangemouth and its workforce.

“We continue to urge the UK Government to bring forward real investment to save Grangemouth, and the jobs, businesses and livelihoods which depend on it.”

Local Labour MP Brian Leishman – who has repeatedly called for the refinery to be nationalised – said his “worst fears have come to pass” as he hit out at his own party.

“Despite promises made during the election, the Labour Government has not moved quickly enough to secure a future for the refinery,” he said.

“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.”

Local SNP MSP Michelle Thomson said she was “shocked and angry”.

She added: “A huge number of people are losing their jobs as a result of the premature decision to close the refinery.

“The effect on both the local community in my constituency of Falkirk East and Scotland more widely will be enormous, and my priority, as always, is supporting those impacted at this difficult time.

“The workers at Grangemouth and their families have been let down by the Labour Party, who promised to save Grangemouth.

“It is on them to finally deliver the support that was promised.”

Scottish Conservative net zero spokesman Douglas Lumsden said: “The loss of over 400 jobs at the refinery will be a hammer blow for the local economy, yet both SNP and Labour ministers have been missing in action.

“They have turned their backs on Scotland’s oil and gas industry and it is clear they want to accelerate its demise.”

Scottish Green MSP Gillian Mackay said: “This is a brutal blow for Scotland, but particularly for the community I grew up in and the workers who I know well.

“I know how hurt the community feels at this time; my thoughts are with everyone.

“This is the opposite of the just transition that is needed for the site and for Grangemouth.

“We have known for a long time that change is needed.

“The workers at Grangemouth are some of the most talented and skilled anywhere in Scotland, they must be at the heart of shaping Scotland’s green industrial future.

“Scotland deserves better; what is happening in Grangemouth is a warning sign for the lack of Government support for the just transition in Scotland.”

The UK and Scottish governments have been asked for comment.