Neste to crop 470 jobs in oil products

The state-run petroleum company Neste on Monday announced to start codetermination talks in the Oil Products unit to cut up to 470 jobs, according to a press release.

The demand for fossil oil products will continue to decline – a trend that has prompted the company to go for the restructuring move.

The COVID-19 pandemic has substantially accelerated the decrease in demand for oil products, which is not expected to recover to previous levels soon, said the company, adding that the planned measures will not affect the security of fuel distribution supply in Finland.

In order to ensure the competitiveness of the Oil Products business, Neste is planning to restructure its refinery operations in Porvoo and Naantali, Finland.

The company is exploring the shutdown of its refinery operations in Naantali and focusing the Naantali site on terminal and harbour operations, as well as transforming the Porvoo refinery operations to co-processing renewable and circular raw materials.

“The energy transition is proceeding faster than expected. The forthcoming operating and maintenance investments in the Naantali refinery are not viable or sustainable in a situation where there is large over-capacity for oil refining globally. Although the time is not optimal, and this news is unfortunate for many of us, the planned actions to develop our refinery operations are urgently needed to maintain operations and strategic capabilities in refining in Finland and to secure Oil Products’ competitiveness,” said Neste President and CEO Peter Vanacker.

To initiate the transformation, the company will start cooperation negotiations in the Oil Products business unit as well as its supporting functions in Finland. If implemented, the plans would mean up to 470 job redundancies, including possible outsourcing.

The decisions on the measures and impacts on the various functions, personnel groups, and locations will be made after the negotiations have been concluded. The planned changes are expected to result in annual fixed cost savings of approximately EUR 50 million.