Neste to close Naantali refinery in March, crop 370 jobs

The state-run petroleum company Neste has decided to shut down its refinery operations in Naantali by the end of March next year, said an official press release on Monday.

The co-operation negotiations in this regard have been concluded and the closure will lead the company to cut about 370 jobs.

Earlier, in September, the company estimated to cut up to 470 jobs but the company, together with the employee representatives, found a solution that reduced the total number of redundancies from the prior estimation.

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

The COVID-19 pandemic has substantially accelerated the decrease in demand for oil products, which is not expected to recover to previous levels any time 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.

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 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,” said Neste’s President and CEO Peter Vanacker.

“…..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,” said Neste Human Resources, HSSEQ and Procurement Senior Vice-President Hannele Jakosuo-Jansson.

Operations in the terminal and harbour in Naantali will continue. To support the future economic activities in the area, Neste is cooperating with the authorities of the Ministry of Economic Affairs and Employment of Finland, the City of Naantali as well as regional environmental agencies.