Neste Oil is planning to invest about €500m as part of a development programme designed to integrate operations at its two refineries in Finland.
The company intends to close or outsource some operations, which it expects will lead to a reduction of around 250 jobs.
Plans include integration of refinery activities at Porvoo and Naantali refineries to achieve better operational and cost efficiencies.
Neste Oil plans to manage the two refineries as one system, with four production lines at Porvoo and a fifth at Naantali.
The programme covers several projects, of which the largest will be the construction of an solvent de-asphalting (SDA) feedstock pre-treatment unit at Porvoo refinery.
The €200m unit, which is expected to be completed in 2017, will improve Neste Oil’s production structure and ability to optimise its crude oil slate.
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By GlobalDataNeste Oil plans to simplify the structure of the Naantali refinery and invest about €60m in several utility-related enhancements.
The company will make a final decision on individual project investments at the site after the completion of basic engineering on the projects, which is due in early 2015.
If approved, planned optimisation projects at Naantali are expected to be completed in early 2017.
Neste Oil president & CEO Matti Lievonen said: “The investments that we’re planning, when completed, will help us reach our long-term profitability target.
“Given the substantial overcapacity that exists in the oil refining sector in Europe, we need to look at a broad range of solutions for improving our competitiveness and securing the foundation of our future operations and growth.”
Refining and marketing firm Neste Oil produces a range of major petroleum products.
The company, which employs about 5,000 people, generated net sales of €17.5bn in 2013.
Image: Neste Oil president & CEO Matti Lievonen. Photo: Courtesy of Neste Oil.
