Grangemouth refinery closure 'of great concern', Falkirk Council boss says

The closure next year of Scotland's only oil refinery with the loss of 400 jobs is of 'great concern', Falkirk Council's chief executive has said.

The news interrupted a meeting of the council's executive today (Thursday).

Kenneth Lawrie told members "it is of great concern", adding the news had been quickly followed by an announcement Falkirk and Grangemouth will now receive an extra £20 million from the UK and Scottish Governments for the local Growth Deal, which will now be worth £100 million.

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And council leader Cecil Meiklejohn warned about the impact the closure could have on local families.

Petroineos issued a statement earlier today confirming its intention to cease refinery operations at Grangemouth by late 2025.

Mr Lawrie told members: "It's an unsurprising announcement given the initial announcement last November about the intention to close but obviously it is a time of great concern for people in Grangemouth, particularly those who work at PetroIneos and in associated businesses."

The company says it intends to "transition to a finished fuels import terminal and distribution hub during the second quarter of 2025, subject to consultation with employees".

Mr Lawrie told members: "Subsequent to that announcement a couple of hours ago, there has been an announcement from the Scottish Government around a joint plan to secure the industrial future of Grangemouth."

"Members will be aware that we have been working for some time on the Growth Deal proposals for Falkirk and Grangemouth.

"The announcement of them was delayed as a result of the calling of the General Election.

"Today's announcement says that the funding package will be increased from £80 to £100 million, with an additional £10 million."

"We will clearly update members further as soon as we've had a chance to look at the information."

The UK and Scottish Governments announced that they are working together to deliver a joint investment plant, with the aim of securing an industrial future for Grangemouth and protect its skilled workforce.

In a statement, Councillor Cecil Meiklejohn, Leader of Falkirk Council, said: “We are sad and disappointed to hear the announcement that the refinery will close at Grangemouth in the summer of 2025. This marks the end of approximately 100 years of this activity on the site and we have obvious concerns about the impact on the refinery workforce and their families, on the supply chain businesses in the local area, and on the local community.

“It is important now to see steps taken by Petroineos to support this workforce into other roles on the industrial complex, as well as working with Falkirk Council and other agencies to support affected employees into future employment. I also welcome the immediate career support announced today for workers being provided by UK and Scottish Government to give tailored support for affected workers.

“It is positive to see that Petroineos is committed to transition the facility into an oil terminal which will protect some jobs and ensure continued activity on the site. We also need to recognise that the other parts of the Grangemouth complex such as the Forties pipeline and petrochemical plant activity will continue.

“I’m also delighted to see that the UK Government has responded to today’s news by committing an additional £10m to the newly named Falkirk and Grangemouth Growth Deal to support the development of future energy opportunities. In addition, confirmation that the Deal has been approved is another major milestone which means we can now start to draw down the £100m that has been provided by the Scottish and UK Governments.

“The Growth Deal will be a significant boost to our local economy a that could eventually see £700m of future investments coming to the area. We estimate this could create up to 2,000 jobs for our area.

“Our officers will now focus their attention on supporting the affected workforce through the Partnership Action for Continuing Employment (PACE) initiative, ensuring that those facing redundancy will have access to vital services to assist them in transitioning to new roles. We remain hopeful that many of the affected jobs will be transitioned or redeployed within other sectors.”

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