Member Article

Teesside jobs under threat

The jobs of up to 200 people employed at the biodiesel refinery Petroplus on North Tees are the latest to be affected by the economic downturn. The global downturn in the fuel sector has forced Swiss-owned Petroplus to consider the future of its Teesside refinery and it is considering selling the site.

During the fourth quarter of 2008 production at the plant was slowed and operations have been running at 30 per cent of capacity to account for poor margins. Lower demand for fuels meant Petroplus posted a second straight loss in this quarter, with net loss at £528.4 million in contrast to a profit of £93.4 million the previous year.

The Petroplus refinery could be forced to convert into a terminal or storage facility if no buyer is found. This would result in the loss of a large number of jobs, though Petroplus states that the refinery will stay operational and investments will continue while a buyer is found.

Chief executive Robert J. Lavinia said: “The board of directors has reviewed the refinery operations and based on required future capital investments at the site, the company will evaluate strategic alternatives, including the potential sale or conversion to a terminal or storage facility.

“During the evaluation process, the company will continue to operate the refinery and make the necessary investments for compliance with environmental, health and safety standards.”

Bob Bolam, regional organiser for the Unite union, said: “We would encourage the company to do everything it can to seek a buyer to protect these highly skilled jobs which form such a crucial part of the Teesside economy.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .