Neste to close refinery in Finland, cut 370 jobs

FILE PHOTO: Fuel pumps are pictured at a Neste Oil gas station in Adazi, Latvia August 5, 2014. REUTERS/Ints Kalnins/File Photo

(Reuters) - Neste will shut down its refinery in Naantali, Finland and cut 370 jobs to seek savings worth 50 million euros ($59.9 million) due to declining demand for fossil oil products, the Finnish biofuel producer and oil refiner said on Monday.

In September, Neste had announced it would cut up to 470 jobs in Finland as it was planning to restructure its refinery operations in Porvoo and Naantali, but the number of final job cuts diminished during statutory cooperation negotiations with its employees.

“The company will focus the Naantali site on the terminal and harbour operations, as well as renew its Oil Products operating model,” Neste said in a statement.

Later on, its Porvoo refinery will be developed towards co-processing renewable and circular raw materials, it added.

“The COVID-19 pandemic has substantially accelerated the decline in demand for oil products, which is not expected to recover to previous levels,” Neste said.

Reporting by Anne Kauranen, editing by Louise Heavens