(Adds detail on job losses)
SYDNEY, Sept 28 (Reuters) - Caltex Australia said on Friday its loss-making 124,500 barrel-per-day Kurnell oil refinery in Sydney will shut down in the second half of 2014 and be converted into an import terminal, with the potential loss of more than 600 jobs.
Kurnell has around 430 employees and 300 contractors, and Caltex has said there will be less than 100 jobs at the site after the 57-year-old refinery is closed.
The company said it had begun consultations with employees, including talks on possible redeployment and retraining.
Australian refiners have been grappling with ageing equipment, cheaper imports, high costs and a strong Australian dollar, leading to closures, restructurings and reviews of operations. (Reporting by Jane Wardell; Editing by John Mair)