Third of workforce to go at Lindsey Oil Refinery

Almost a third of the workers at the Lindsey Oil Refinery are to lose their jobs.

The Insolvency Service said 125 employees would be made redundant at the end of October, with 255 people remaining at the site at North Killingholme, in North Lincolnshire.

The refinery was taken over by the official receiver in June after its owner, Prax Group, went into administration.

The Unite union said the government was “responsible for the redundancies going ahead, as it could provide support to ensure the refinery is kept intact and operational”.

Energy Minister Michael Shanks said the official receiver was “assessing potential bids for the future of the refinery and its assets”.

“Our thoughts are with the workers, their families and the community who have been badly let down by Prax Lindsey Oil Refinery owners,” he said.

Shanks said the decision had been made to give employees “as much notice as possible” while concluding the sales process.

He added: “The majority of the workforce will be retained beyond the end of October and we remain hopeful that a solution will be found that supports jobs on the site long-term.”

The Insolvency Service said affected employees would be supported via the redundancy payments service and the official receiver was prioritising “the ongoing process to secure the sale of the refinery”.

A spokesperson added: “This decision was not taken lightly and follows a thorough review of all aspects of the business, following its insolvency.

“The conduct of the company and its directors, following the liquidation of Prax Oil Refinery, remains the subject of an ongoing Insolvency Service investigation.”

Unite claimed there had been at least two bids to “buy and operate the site as a going concern keeping a full workforce”.

Its general secretary, Sharon Graham, described the government’s response to the plight of the workers as “tin-eared”.

“This makes a mockery of government promises to protect workers and its plan for net zero,” she said.

“The government had promised to ensure that job-focused bids would be the priority at Lindsey, yet prior to bids even being considered, they are already issuing redundancy notices.”

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