The “devastating” closure of the Petroineos oil refinery at Grangemouth will be “felt across the length and breadth of the country”, putting further jobs at risk, the Federation of Small Businesses has warned.
Petroineos today announced its intention to cease refinery operations at Grangemouth and a “transition to a finished fuels import terminal and distribution hub” during the second quarter of 2025, subject to consultation with employees.
It revealed the move would result in a net reduction of about 400 jobs over the next two years.
READ MORE: 400 jobs to go as Grangemouth refinery ceases production
Hisashi Kuboyama, development manager for the west of Scotland at the Federation of Small Businesses, said: "Although not unexpected, the Petroineos closure is nevertheless devastating news which will be felt well beyond the refinery gates.
"The knock-on effect on the supply chain will have an impact on numerous small businesses across the length and breadth of the country, putting many more jobs than the 400 on-site at risk.”
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He added that the £100m support package pledged by the UK and Scottish governments “is welcome”, adding: “We will be joining an emergency meeting of the Grangemouth Future Industry Board later today and stand ready to play our part in supporting the future of these firms and their staff."
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Petroineos said today: “Grangemouth is the UK’s oldest refinery and currently faces significant challenges due to global market pressures and the energy transition. Refining is a globally competitive industry and Grangemouth is increasingly unable to compete with bigger, more modern and efficient sites in the Middle East, Asia and Africa.
“Due to its size and configuration, Grangemouth incurs high levels of capital expenditure each year just to maintain its licence to operate. This annual outlay on essential planned maintenance and running repairs has been consistently higher than the company’s earnings over the past decade.”
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