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Strike refinery shutdown complete Strike refinery shutdown complete
(20 minutes later)
The shutdown of the Ineos oil refinery at Grangemouth in central Scotland has been completed, the company has said.The shutdown of the Ineos oil refinery at Grangemouth in central Scotland has been completed, the company has said.
The 1,700-acre plant is being closed in preparation for a two-day strike by staff over pension changes, which is due to start on Sunday.The 1,700-acre plant is being closed in preparation for a two-day strike by staff over pension changes, which is due to start on Sunday.
Oil giant BP has said that if the strike action went ahead, it would have to close the Forties oil pipeline.Oil giant BP has said that if the strike action went ahead, it would have to close the Forties oil pipeline.
The pipeline links North Sea oil production with Grangemouth, delivering 30% of the UK's daily oil output. The pipeline links North Sea oil production with Grangemouth, delivering a third of the UK's daily oil output.
The process to shut the refinery, which is Scotland's main fuel supplier, began on Monday.The process to shut the refinery, which is Scotland's main fuel supplier, began on Monday.
It is the first time the facility, which processes 210,000 barrels of oil a day, has been completely shut down.It is the first time the facility, which processes 210,000 barrels of oil a day, has been completely shut down.
Ineos said it could take up to three weeks for the plant to get back up to 100% production capacity following the shutdown. We are fighting for the future of Grangemouth Richard LongdonIneos
Despite the plant's closure, the BBC understands last minute talks aimed at averting the strike are still continuing. Ineos said it could take up to three weeks for the plant to get back to 100% production capacity following the shutdown.
The Forties pipeline, which comes ashore at Cruden Bay in Aberdeenshire and ends at Kinneil, near Grangemouth, is reliant on the Ineos facility for steam and electricity to function. Despite the plant's closure, Ineos spokesman Richard Longden told the BBC he remained hopeful that the strike could still be averted.
Ineos chief executive Tom Crotty said that despite "repeated requests" the Unite union had refused to maintain power and steam to keep the Kinneil Plant in production. Mr Longden said Ineos would look to talk to the union "right until the eleventh hour", and insisted changes to the pension scheme were necessary to safeguard jobs by ensuring Grangemouth was profitable in the long term.
He said: "We are deeply disappointed that today the Unite union has chosen to escalate this dispute further. He added: "We are fighting for the future of Grangemouth. We have already invested £100m to make this a world-class facility, but it needs another £750m spending on it.
"We call on Unite to change their plans that target other businesses and indeed the wider Scottish and UK economy." "In order to do that we have to modernise not only our plant and our assets but also our working practices, and a big part of that is modernising our pension scheme.
Industry groups have warned that the closure of the pipeline could cost the UK economy more than £1m an hour and cause the suspension of production across 65 oil fields in the North Sea. "The current pension scheme is just not sustainable. About a quarter of our overall employment costs here at Grangemouth are based on the pension scheme, which is currently non-contributory. People don't pay anything for their pension scheme."
The Forties pipeline, which ends at the Kinneil terminal, near Grangemouth, is reliant on the Ineos refinery for steam and electricity to function.
Mr Longden claimed that despite repeated requests, Unite had refused to maintain power and steam at the refinery so that the pipeline can remain operational.
He said: "We have put that to the union on a number of occasions and they have refused. We are hoping that they will come back at some point today or tomorrow and say to us that we can keep that steam operating."
Industry groups have warned that the closure of the pipeline could cost the UK economy £50m a day and cause the suspension of production across 65 oil fields in the North Sea.
The Unite union, which represents 1,200 workers at the refinery, accused Ineos of acting cynically.The Unite union, which represents 1,200 workers at the refinery, accused Ineos of acting cynically.
National officer, Phil McNulty, said: "We believe that Ineos has acted cynically in its dealings with us and we are suspicious about its intentions even to try to avert a strike.National officer, Phil McNulty, said: "We believe that Ineos has acted cynically in its dealings with us and we are suspicious about its intentions even to try to avert a strike.
"Our members have acted in good faith throughout this dispute."Our members have acted in good faith throughout this dispute.
"We have talked to Ineos for eight months and only when the company breached the terms of the consultation by introducing changes to the pension scheme without agreement did we ballot out members.""We have talked to Ineos for eight months and only when the company breached the terms of the consultation by introducing changes to the pension scheme without agreement did we ballot out members."