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Neste to end refining operations at Naantali

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Hydrocarbon Engineering,

Neste has decided to shut down its refinery operations in Naantali by the end of March 2021.

The company will focus the Naantali site on the terminal and harbour operations, as well as renew its Oil Products operating model. 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 €50 million. The company has said the shutdown of the Naantali refining operations will not affect the security of fuel distribution supply in Finland.

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

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

Operations in the terminal and harbour 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.

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