GOV’T-OWNED FIRM SHUTS DOWN NAANTALI REFINERY IN FINLAND

State-owned oil company Neste has announced that it will shut down its refinery in Naantali by the end of March 2021, the Finnish news agency Yle reported.

The firm has announced 370 job cuts as part of the restructuring, as opposed to its previous estimate of 470. The company said it would offer pension and support packages to those whose employment was being terminated.

Operations in Naantali now will focus on terminal and port operations, the company said after completing co-determination talks which began in September. The firm said the coronavirus pandemic had accelerated the decline in demand for fossil petroleum products. With renewable energy consumption on the rise, Neste said it didn't expect the demand to return to pre-pandemic levels.

"Neste's story in Naantali had just started, so I understand that this news is difficult to receive. Over time, our Naantali staff has shown the ability to cooperate and innovate in many difficult situations, which we can be proud of. Now, however, we are in a situation where we have no options," Neste CEO Peter Vanacker. "We are in agreement that we did not have enough information, time or even the opportunity to prepare alternative solutions. It would appear as if the outcome of the negotiations was predetermined," staff representatives stated in a joint bulletin.