Something unprecedented has happened, my old town has made it to the local news and even bagged the top spot, and without a drop of blood. The town of Immingham was featured on ITV's regional news program Calendar. Unfortunately it's not good news, it's pretty grim in fact.
After serious mismanagement by its owners, the Lindsey Oil Refinery (LOR) is shutting down risking thousands of jobs, and the closure will open a big black hole in the economy of the southern bank of the Humber river. This story is very similar to Scunthorpe's Steel works, which was facing a physical as well as financial collapse and forced the government to step in to keep it open. Scunthorpe is just 20 miles away as the crow flies, these two developments show that the entire region and its heavy industries are in a crisis.
Before the news broke yesterday (22nd of June) I was already made aware of how bad things were going there. I used to work on LORs satellite sites in the neighbouring docklands and have friends and family who work on the refinery in various grades and roles and know many more who have since retired. The refineries cast a big shadow, and I mean that literally as well as figuratively. In addition to being a major source of employment for the towns and villages dotted around them, the chimney stacks can be seen at nearly every part of the town.
The mood is bleak here, I've been told today (23rd) there will be a march up to the refinery and will try and get details. In the meantime, here are some facts not covered in the ITV Calendar report.
LOR is one of two refineries built in-between the port town of Immingham (Im-Ing-Um) and south Killingholme. It employs around 400 permanent staff but also employs many more as contractors and temporary workers. Shutdowns and periodic maintenance can see the number of workers active on the site balloon into the thousands. It produces various kinds of petroleum, including aviation fuel, which means a knock-on effect beyond the local area is likely.
Already LORs tanker drivers, around 200 people have been made redundant, they were informed of this via Microsoft Teams call. The rest of the staff are in limbo, with discussions ongoing. My friends still working there are updating CVs and looking for other work while they await updates.
The owners of Prax the company that has brought LOR to the point of collapse have gone to Dubai. Funny they have enough money for that. And are generally unresponsive to request for comments or information.
I was working on Immingham docks when Prax took over LOR and I remember there was some disquiet and alarm back then due to the company having no background in refining, several LOR inspectors I knew were convinced the refinery was done at that point, it looks like those fears were correct it just took a little longer to become apparent.
LOR's neighbouring refinery Conoco Phillips (pronounced as Ko-No-Ko by the locals, but is pronounced Kon-O-Ko by the owners) is owned by the US based Phillips 66 and is interested in LORs storage tanks and industrial rail links but produces different grades of fuel so probably will not be interested in the refining systems of LOR. It's doubtful that the entire infrastructure will go, it seems likely that it will be stripped and broken up by other firms, how much will remain and how many jobs will be saved by this asset redistribution remains to be seen.
I was informed that LOR has enough crude to last until the 28th with several vessels standing by in the Humber and the North Sea with fuel oil for LOR that could extend the operational time further, but its up in the air as to if that'll happen.
I have also heard that two other refineries in the UK (out of 6 total) that are looking at a similar winding down but have no details at yet.
You may remember that back in 2009 LOR and Conoco were the epicentre of a wave of wildcat strikes throughout the industry that spread throughout the UK. At the time I was in Hull studying, but my stepdad was involved with the Scaffolders, he's since retired but still hears things from his mates still there. He told me about the planned march and was one of the people interviewed in the Calendar report. Though, they cut out most of his commentary on strategic economic interests and big global firms that can asset strip and then relocate.
Based on his and others comments, I don't think a repeat of 09 militancy is likely due to demoralisation of the workforce. This time, it's the owners and regulators stopping work, the Trade Union's seem firmly in control and wedded to appealing to the government for financial support and seem resigned to a de facto lockout. Though, despair can turn to anger very quickly, especially if the feelings of abandonment and being ripped off continue. I'm monitoring the situation to see if anything changes.