Neste has decided to shut down its refinery operations in Naantali, Finland by the end of March 2021.
In the second phase of the transformation, the Porvoo refinery will be developed towards co-processing renewable and circular raw materials. These measures are expected to result in annual fixed cost savings of approximately EUR 50 million, the company said in its press release.
The shutdown of the Naantali refining operations does not affect the security of the fuel distribution supply in Finland, the company added.
The company estimated in its earlier announcement that the plans, if implemented, would mean up to 470 redundancies, including possible outsourcing. Together with the employee representatives, a solution was found that reduced the total number of redundancies from what was previously presented. The shutdown of the Naantali refining operations and the renewal of the Oil Products operating model will lead to approximately 370 redundancies.
Commenting on the development, Neste’s President and CEO Peter Vanacker, said, “We want to improve our competitiveness and maintain refining operations and related strategic capabilities in Finland. The changes will support the transformation of the Porvoo refinery into a leading sustainable, safe, and efficient refinery, enabled by our highly innovative and efficient Neste people. Neste’s story began in Naantali, so I understand that this news might be difficult to receive. Over the years, our Naantali people have shown tremendous cooperation and innovation skills in many difficult situations, and we can be proud of that. But now we are in a situation where we do not have any other options. We will support our people in adapting to this change in several ways.”
“I want to thank our employee representatives for the co-operation negotiations that were open and thorough. Together we looked at different solutions which improve competitiveness and examined the effects of the future transformation of the oil industry. However, during the negotiations, we did not find a solution which would have enabled continued and competitive refining operations in Naantali. As part of our transformation, we will also renew the Oil Products operating model. As a consequence, some of the jobs will cease to exist but completely new jobs will also be created. In the co-operation negotiations, we agreed on comprehensive change support measures which will help our personnel in adapting to the change,” says Hannele Jakosuo-Jansson, Senior Vice President, Human Resources, HSSEQ and Procurement at Neste.
In this transformation, Neste will primarily offer its personnel new jobs and related training as well as compensation for moving to a new location. For those whose employment will end, Neste offers retirement agreements and specific support packages, including also startup grants to support education or entrepreneurship. In addition, a change support program will be implemented with different measures which support finding new employment.
“Operations in the terminal and harbor in Naantali will continue. To support the future economical activities of the area, Neste is cooperating with the authorities of the Ministry of Economic Affairs and Employment of Finland, City of Naantali as well as regional environmental agencies,” the company said in its press release.
Neste creates solutions for combating climate change and accelerating a shift to a circular economy. The company refines waste, residues and innovative raw materials into renewable fuels and sustainable feedstock for plastics and other materials. Neste is the world’s leading producer of renewable diesel and sustainable aviation fuel, developing chemical recycling to combat the plastic waste challenge. The company has been included in the Dow Jones Sustainability Indices and the Global 100 list of the world’s most sustainable companies.
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