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BP closes Brisbane refinery, with hundreds of jobs to go BP closes Brisbane refinery, with hundreds of jobs to go
(35 minutes later)
BP has announced its Bulwer Island refinery in Brisbane will close by the middle of 2015, with up to 380 jobs lost.BP has announced its Bulwer Island refinery in Brisbane will close by the middle of 2015, with up to 380 jobs lost.
The president of BP Australasia, Andy Holmes, said the growth of large refineries in the Asia-Pacific region was putting huge commercial pressure on its Australian operations.The president of BP Australasia, Andy Holmes, said the growth of large refineries in the Asia-Pacific region was putting huge commercial pressure on its Australian operations.
“It’s against this background that we have concluded that the best option for strengthening BP’s long-term supply position in the east coast retail and commercial fuels markets is to purchase product from other refineries,” he said.“It’s against this background that we have concluded that the best option for strengthening BP’s long-term supply position in the east coast retail and commercial fuels markets is to purchase product from other refineries,” he said.
“While this decision will significantly improve our competitive position, it will result in job losses and I would like to acknowledge the enormous commitment and contribution made over many years by our staff at Bulwer Island.”“While this decision will significantly improve our competitive position, it will result in job losses and I would like to acknowledge the enormous commitment and contribution made over many years by our staff at Bulwer Island.”
BP said that staff would be cut from 380 to 25 over the course of the plant’s closure, which is expected to take about 12 months, and that supply would not be affected.BP said that staff would be cut from 380 to 25 over the course of the plant’s closure, which is expected to take about 12 months, and that supply would not be affected.
The Queensland premier, Campbell Newman, said he was "very disappointed" at the news.
He said the plant's staff were "highly skilled, highly trained people in a very specialised industry", and he expected BP to offer them assistance to find new jobs. "[BP] are big enough, they have the financial capability, they need to look after their employees," he said.
The Australian Manufacturing Workers Union, which represents workers at the plant, condemned BP for announcing the closure of the refinery without consulting employees or the union.
The AMWU's Queensland secretary, Rohan Webb, said the decision was "a big kick in the guts for Queensland manufacturing". The union said it would be holding a mass meeting with employees.
The Bulwer Island refinery was built in 1964 and has been operated by BP since 1984.The Bulwer Island refinery was built in 1964 and has been operated by BP since 1984.
The news comes after Shell’s decision in February to sell its retail stations and Geelong refinery, which employs 450 workers, to the Swiss energy company Vitol for $2.9bn.The news comes after Shell’s decision in February to sell its retail stations and Geelong refinery, which employs 450 workers, to the Swiss energy company Vitol for $2.9bn.
Caltex closed its Kurnell refinery in Sydney in 2012 citing similar pressures from large refineries in Asia. It operates the Lytton refinery in Brisbane, which a spokeswoman said the company had “no plans to close”.Caltex closed its Kurnell refinery in Sydney in 2012 citing similar pressures from large refineries in Asia. It operates the Lytton refinery in Brisbane, which a spokeswoman said the company had “no plans to close”.
The shadow treasurer, Chris Bowen, said the announcement was sad news for workers. "Refining has been under challenge in Australia for many years now. We've seen refineries across Australia dealing with those challenges,” he said.The shadow treasurer, Chris Bowen, said the announcement was sad news for workers. "Refining has been under challenge in Australia for many years now. We've seen refineries across Australia dealing with those challenges,” he said.
"Obviously we'd encourage BP and [federal] and state governments to work co-operatively to ensure every assistance is given to those workers.""Obviously we'd encourage BP and [federal] and state governments to work co-operatively to ensure every assistance is given to those workers."
Bowen said the federal government needed a plan for dealing with the plant’s closure, and the loss of jobs to follow when Toyota, Holden and Ford quit their manufacturing plants in Australia.Bowen said the federal government needed a plan for dealing with the plant’s closure, and the loss of jobs to follow when Toyota, Holden and Ford quit their manufacturing plants in Australia.
"This government seems more devoted to spinning their way into May's budget than they are determined to assist workers affected by change,” he said."This government seems more devoted to spinning their way into May's budget than they are determined to assist workers affected by change,” he said.