The future of North East Lincolnshire’s Lindsey Oil Refinery looks increasingly uncertain, as the government has failed to find a buyer, leading to an expected shutdown. The refinery, which came under the control of the Official Receiver last month following Prax Group’s entrance into administration, is looking at a loss of 420 jobs. Energy Minister Michael Shanks revealed that no viable offers were presented to acquire the entire refinery, resulting in a decision to cease its operations.
Situated in Immingham, the refinery plays a crucial role in the local economy. The Unite union has voiced concerns over its closure, which could have an indirect knock-on effect on up to 1,000 jobs, including contractors and those involved in the supply chain. The site has been owned by the Prax Group from 2021, following its purchase from Total. However, financial data indicates it sustained losses of approximately £75 million post-acquisition.
Minister Shanks voiced his deep regret over the situation, expressing sympathy to the affected workers and their families. He called on Prax to voluntarily support those impacted financially. To soften the blow, the government has committed to funding a comprehensive Training Guarantee to help the refinery workers transition into roles within the rapidly growing clean energy sector.
Even as Lindsey Oil Refinery prepares to close, the nearby Phillips 66 Humber refinery continues its operations, retaining some level of industrial activity in the region. The Official Receiver is still trying to attract interest in individual assets of the refinery in the hopes of recouping some of the site’s value.
As this situation unfolds, local residents and workers are advised to stay updated through local news media and avail themselves of the support services provided in their community.
This story was edited by The Lincoln Post, based on original journalism by www.bbc.com.
