Almost a third of staff at the Lindsey Oil Refinery will be made redundant later this month, the Insolvency Service has confirmed.
A total of 125 employees will lose their jobs at the end of October, leaving 255 workers in place at the site in North Killingholme, North Lincolnshire.
The refinery, a major employer in the region, was taken over by the official receiver in June after its owner, Prax Group, went into administration.
Government and Union Clash Over Responsibility
The Unite union blamed the government for the cuts, accusing ministers of failing to provide support to protect jobs.
General secretary Sharon Graham described the move as “tin-eared”, adding: “This makes a mockery of government promises to protect workers and its plan for net zero. The government had promised to ensure that job-focused bids would be the priority at Lindsey, yet prior to bids even being considered, they are already issuing redundancy notices.”
The government has insisted the sale process is ongoing. Energy Minister Michael Shanks said the official receiver was “assessing potential bids for the future of the refinery and its assets”.
“Our thoughts are with the workers, their families and the community who have been badly let down by Prax Lindsey Oil Refinery owners,” he said. “The majority of the workforce will be retained beyond the end of October and we remain hopeful that a solution will be found that supports jobs on the site long-term.”
Insolvency Service Statement
The Insolvency Service said the decision to issue redundancies had been taken after a “thorough review of all aspects of the business”.
A spokesperson added: “This decision was not taken lightly. Affected employees will be supported via the redundancy payments service, while the official receiver prioritises the ongoing process to secure the sale of the refinery.”
The conduct of Prax and its directors is subject to an ongoing Insolvency Service investigation.
Local Impact
Former employee Frederick Robinson described the job losses as “disastrous”.
“There’s no more jobs in this area for them. So they’ve got to either retrain or move out of the area. It could be a really worrying time, especially for the young families with young kids, mortgages,” he said.
Unite said at least two bids had been made to buy and operate the site with a full workforce, and urged the government to prioritise those offers.
