Times of Oman
Price in RO
24ct / gm
22ct / gm
Forex Rates vs R01
Back to Homepage
Ineos says to close UK chemical plant, decide on refinery
October 23, 2013 , 4 : 26 pm GST
SAVE THIS ARTICLE
A general view of the Grangemouth oil refinery, at Grangemouth, Scotland. Photo - Reuters
Ineos said on Wednesday it would close its petrochemical plant in Grangemouth, and the future of Scotland's only refinery remained under threat as the company said it would reopen the facility only if the threat of strike action was removed.
The 210,000-barrels-per-day refinery, shut last week due to a dispute, provides most of the fuel for Scotland. It and the petrochemical plant in total employ around 1,400 staff.
Grangemouth could be the latest in a line of refinery casualties, including Coryton in Britain-victims of competition from Asia and the Middle East, and falling demand for gasoline in Europe.
British Prime Minister David Cameron wants the Swiss owners of the chemicals plant and refinery to continue talks with workers to try to resolve the dispute, his spokesman said.
Ed Davey, Britain's energy minister, said: "We stand ready to help with discussions between the management and the union to ensure this can happen."
Ineos said in a statement that it "will now decide on whether to restart the refinery".
"This will be primarily dependent on the removal of the threat of further industrial action," the company said.
The company said liquidators would be appointed within a week for the petrochemical plant.
Grangemouth accounts for around 8 per cent of Scotland's manufacturing industry, according to calculations by David Bell, a professor of economics at Stirling University.
He said the shutdown of the petrochemicals plant would be the "heaviest blow" for Scotland since the disappearance of a number of electronics companies collectively known as Silicon Glen in the 1990s and early 2000s.
"I guess there'll now be a kind of race on between the Scottish and UK governments to see who can present the best political case in relation to rescue or partial rescue."
The refinery has been shut due to an industrial dispute centring on terms and conditions including pension entitlement.
The refinery moved closer to permanent closure on Monday after a clear majority of union workers rejected a plan that would have cut pensions and benefits.
PetroChina owns half of the refinery, which Ineos operates. Ineos owns completely the attached petrochemical plant.
Grangemouth also powers BP's Kinneil terminal, which processes North Sea crude coming ashore via the Forties Pipeline System, a grade that helps set the benchmark for global oil prices.
Rate this Article
Rates : 0, Average : 0
Latest in this section
PEIE’s meet-the-buyer event boosts ‘Origin Oman’ campaign
National Bank of Oman GCC Fund raises OMR12.4m
HSBC Bank Oman ranked one of the strongest in Oman
PEIE floats tender for infrastructure facilities at Samail industrial estate
Oman reviewing its foreign investment regulation
Post a Comment
Did you like this section? Leave a comment!
Your Name :
Your Email Address :
Your Comment :
Enter ImageText here:
No Comments Posted
TOP RATED ARTICLES
Malayalam film to be fully shot in Oman
Lack of loos
The rainbow over the desert sky
Saleh Al Shaibany
India lifts anti-dumping duty on Oman’s polypropylene export
Filipino expats in Oman raise funds for Haiyan victims
Times News Service
More in News
How to choose your writing form and communicate your creative thoughts
Natasja Engholm - Special to Times of Oman
Indonesia's illegal dentists bite back after ban
Albanian cannabis fiefdom at heart of European traffic
Asia's animators draw inspiration from Miyazaki
Splash 'Forever More'
Times News Service
More in Features
Musharraf is ready for trial, but is the government?
Of Middle East and the Arab winter
France ill at ease with US policy shift in M-E
The harsh reality of mass migration from Syria
Blind obsession with celebrities
Jayanta G Borpujari
More in Columns
Get Top news by E-mail.
Copyright © 2012 Muscat Press & Publishing House SAOC. All rights reserved. Times of Oman is not responsible for the content of external internet sites.
For reprint rights contact:
TOO Online Editorial