Grangemouth bosses fail to rule out more job losses following closure of oil refinery

Grangemouth bosses have failed to rule out the possibility of further job losses at Scotland’s largest industrial site, following the closure of its oil refinery. The closure of the oil refinery will result in over 400 highly-skilled workers facing redundancy as refining operations on the banks of the Forth come to an end after more than a century of operation. A senior figure at Ineos acknowledged that additional roles could be at risk once a review of shared services at the site is completed.

The joint venture between Ineos and Petro China that operates the refinery is set to shut down in spring 2025. However, the petrochemical plant at the same site, solely owned by Ineos, will continue its production activities. SNP MSP Michelle Thomson, representing Grangemouth, questioned the bosses about potential future job cuts. Colin Pritchard, an external affairs director at Ineos, indicated that while no cuts were planned at the chemical plant specifically, shared services provided by the chemicals business to the refinery could be affected.

The refinery is expected to be repurposed into a fuels import and export depot, with an estimated workforce of only 75 employees. A Petroineos executive assured the Scottish Parliament’s economy committee that the company’s supply chains would be resilient amidst geopolitical challenges. He mentioned that the business has implemented measures to ensure a stable supply chain, affirming it to be “Trump-proof” following the recent US presidential election.

Petroineos also confirmed that there have been discussions but no credible bids received from a third party to purchase the refinery and keep it operational. Both the UK and Scottish Governments have previously ruled out providing public funds to sustain the refinery. Labour MP Brian Leishman has called for the nationalisation of the site, disputing the notion that its closure is inevitable.

In my view, the potential job losses at Grangemouth are concerning, especially for the affected workers and their families. The transition of the refinery into a fuels depot signals a shift in the local industrial landscape, with implications for the wider economy. It is essential for both government and industry stakeholders to work towards sustainable solutions that safeguard jobs and support the affected community’s livelihoods.