BP Plans For Petrochemical Business
BP is to include nearly all of its Grangemouth operation in a planned spin-out of its petrochemical business, rather than splitting the Scottish site into two separate operations. The oil refineries at Grangemouth and Lavera, in southern France, will now be included as part of the new stand-alone business that is due to be floated in the US later next year.
BP concluded that the refining and petrochemical operations at the two sites were too closely integrated to be separated in a practical manner.
The 1400 employees at Grangemouth will be transferred to the new entity, reported to be named Amoco Chemicals. Previously, only 500 Scottish staff were to join the new business.
BP said it would retain control of its Forties Pipeline System, which delivers crude oil and gas liquids to the Kinneil plant alongside Grangemouth. Kinneil then separates the oil and gas, with crude oil then being exported via the Hound Point loading terminal. Around 100 people employed at the Forties, Kinneil and Hound Point operations will be retained by BP.
BP stated in a separate announcement, that it will close its Rigidex 3 chemicals plant at Grangemouth. The 75 staff employed there will be offered employment in the businesses that will become part of the new petrochemical company. The BP spokesman stated the Rigidex plant would have closed regardless of the spin-out, and will shut down by the first quarter of next year.
BP and the new company has told employees there will be no compulsory redundancies as a result of the spin-out. In addition, workers have been assured there will be no changes in terms and conditions of employment with comparable share plan provisions being implemented; and a pension plan established.
The new business will be headquartered in Chicago, and will employ around 7500 people at 24 sites around the world. It will have an annual turnover of $20bn (£10.8bn).
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Added to site on 17/11/04