Production at Lindsey Oil Refinery in North East Lincolnshire has officially halted, according to statements from government officials. Despite an extensive search for a potential purchaser, all offers for the whole refinery have lack credibility, leaving no choice but to gradually wind it down. Harriet Eisner, a regional coordinator for Unite, confirmed that last Friday marked the exhaustion of the crude oil supply. The future of the refinery, located near Immingham, is uncertain after being taken over by the Official Receiver in June, following the administration of its owning entity, the Prax Group. This situation has put 420 jobs at risk.
The government has declared that the Official Receiver will carry on selling refined products for several more weeks. This move is meant to grant buyers sufficient time to reorganise their supply chains. Earlier, Rob Waltham, the leader of North Lincolnshire Council, urged the government to prolong the refinery’s operation. He hoped this would enable a plausible buyer to surface and prevent a ‘devastating blow’ to the local employment structure – a blow that could put thousands of jobs in jeopardy, both at the refinery and throughout its associated supply chain.
Waltham’s appeal includes immediate financial aid for businesses in the refinery’s supply chain, safeguards for workers’ pensions, as well as a government-backed plan for the remediation and redevelopment of the site. The refinery’s financial difficulties have been attributed to losses of roughly £75 million over the past three years. Energy Minister Michael Shanks has voiced his disappointment over the predicament left by the previous owners, but ensures that efforts to engage potential buyers for individual assets continue.
The government offered its condolences to the refinery’s workers, as well as their families and the wider community. It is assured that the direct employment of those working at the refinery will be guaranteed in the months to come.
