Neste to close Naantali refinery in Finland, leaving 370 jobs at risk

Neste has decided to close its Naantali refinery in Finland by the end of March 2021 and also renew the operating model of its oil products business, leaving nearly 370 jobs at risk.

In September 2020, the Finnish oil refining and marketing company revealed plans to restructure its refining activities in Porvoo and Naantali for sustaining the competitiveness of its oil products business.

The Naantali refinery, which employs nearly 350 people, has been producing diesel, bitumen, solvents, and small-engine gasoline among other commodities. The Finnish oil refinery has a capacity of refining nearly 58,000 barrels a day of crude oil, with the production totaling around three million tons per annum.

Neste said that it will now focus the Naantali refinery site on the terminal and harbor operations.

The Porvoo refinery, on the other hand, will be developed towards co-processing renewable and also circular raw materials.

Neste expects its transformation measures to deliver annual fixed cost savings of nearly €50 million.

The Finnish downstream company expects the demand for fossil oil products to continue to decline while projecting growth in the share of renewable energy solutions in the coming years.

Furthermore, Neste blamed the prevailing Covid-19 pandemic for the decline in the demand for oil products, which it says is not likely to return to previous levels. Due to this, the Finnish company said that it is necessary to make some basic changes to help its oil products business remain competitive.

The transformational measures are expected to enhance the company’s productivity, resource efficiency, and also adaptiveness to changes in the oil market.

Neste said that the security of the fuel distribution supply in Finland will not be impacted by the shutdown of its Naantali refinery.

Peter Vanacker – Neste President and CEO of said: “We want to improve our competitiveness and maintain refining operations and related strategic capabilities in Finland. The changes will support the transformation of the Porvoo refinery into a leading sustainable, safe, and efficient refinery, enabled by our highly innovative and efficient Neste people.

“Neste’s story began in Naantali, so I understand that this news might be difficult to receive. Over the years, our Naantali people have shown tremendous cooperation and innovation skills in many difficult situations, and we can be proud of that. But now we are in a situation where we do not have any other options.”

Last month, Neste sold its stake of 49.99% in Nynas, a Sweden-based manufacturer and marketer of naphthenic specialty oils and bitumen products, to Bitumina Industries for an undisclosed price.