AROUND 180 workers at the Stanlow oil refinery in Ellesmere Port are staring down the barrel of redundancy this Christmas, it has emerged.

It comes after Shell revealed plans to close two chemical plants on the site following a serious fire in August this year.

Essar bought the refinery in 2011 but Shell retained ownership of the Shell Higher Olefins Plant (SHOP) and Alcohols units.

This is where the under-threat staff have worked for the past seven years, employed by Essar under a management agreement with Shell.

Chester and District Standard:

Picture of the fire at Stanlow plant in August this year

In a statement last week, bosses at Shell said they had concluded it is “not economically viable” to rebuild the SHOP following this summer’s fire.

In response, a spokesman for Essar said: “We have been informed by Shell that the decision is a wholly economic one. Essar was not involved in the decision to close the units.

“Although the Alcohols units were undamaged during the incident, Shell considers that these are not economical to run without the feedstock which was previously supplied from SHOP. Therefore, the Alcohols units at Stanlow will also be decommissioned. Both units will eventually be demolished.”

She added: “The decision taken by Shell to close the chemical units is obviously extremely disappointing. All parties recognise the hard work and commitment of those Essar employees who have operated the plants on behalf of Shell for the past seven years.

“In the limited time available since the decision was communicated to us, it has not been possible to fully examine all the different issues related to such a complex situation. Operational closure, though, will inevitably mean a significant reduction in the number of our employees working on or in support of these Shell assets.”

Essar says it will “consider all of the options available” as it manages the impact of Shell’s announcement, although it accepts these options will be limited.

The spokesman added: “Where redundancies are unavoidable, Essar will enter into consultation with all affected employees on an individual basis and where appropriate and in accordance with legislation, collectively with recognised trade unions and/or employee representatives. Essar will ensure that it meets its statutory and contractual obligations to its employees.

“This will be a very difficult time for those people involved and the company will naturally support those affected and will be offering outplacement consultancy as required.”

Cheshire West and Chester Council’s leader, Samantha Dixon, said the authority would support any Essar staff who are made redundant.

“We are saddened and disappointed by the news of potential redundancies at Shell’s site in Ellesmere Port and the impact this will have on the highly skilled and motivated workforce,” she said.

“This will be an uncertain time for staff, many of whom live within our borough. We hope that job losses can be managed in the main through voluntary redundancy.

“We have offered our support and will do everything we can to help those who may need to look for new employment, including work-based skills and career guidance, and linking with local companies currently recruiting.”

Are you affected by Shell’s announcement? Contact The Standard’s news desk on 01244 304554