Total – adaptation plan to secure LOR’s future

Total

“LOR will be a smaller, but a higher converting and more profitable refinery,” says general manager Jacques Beuckelaers

 

The Lindsey Oil Refinery (LOR) will be adapted, along with its logistics activities, to improve its efficiency and enhance its competitiveness by reducing its costs and cash breakeven.

After having studied several options for the refinery in the past years, including a divestment, and encouraged by strong motivation of a competent management and workforce, Total has now defined an adaptation plan that will ensure a sustainable future for Lindsey Oil Refinery’s industrial and business activities within the Total European refining system.

Up to 180 jobs are under threat; the government has said it ‘stands ready’  to work with Total to support those affected.

“Total has developed a viable plan for the future of Lindsey Oil Refinery,” states general manager Jacques Beuckelaers. “The refinery operates in the most competitive market in Europe, which itself is facing strong international competition, rising costs, falling petrol and diesel consumption, and continued overcapacity. Modernisation programmes at Lindsey have yielded encouraging results over the last years. These efforts will be further consolidated by streamlining the refinery’s production capacity and organisation. With our solid industrial capabilities and our professional and dedicated teams, we will adapt the refinery to ensure its future: LOR will be a smaller, but a higher converting and more profitable refinery.”

Throughout Europe, petrol and diesel consumption has continually decreased over the last decade. Although more than 10% of the European refining capacity has been closed in the same period, overcapacity remains and competition from overseas is growing. In this context, Lindsey Oil Refinery is facing lower domestic sales and lower utilisation rates which dangerously threaten its profitability.  www.total.uk

 

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