Lindsey Oil Refinery to cut 125 jobs following Prax collapse

(Sharecast News) - Nearly a third of staff at the Lindsey Oil Refinery are set to be made redundant after the site was taken over by the official receiver in June, following the administration of owner Prax Group. The Insolvency Service confirmed that 125 roles would be cut at the end of October, leaving 255 employees at the North Killingholme facility in North Lincolnshire.

The Unite union said the government was "responsible for the redundancies going ahead", as it could provide support to ensure the refinery was kept intact and operational.

Energy minister Michael Shanks said the receiver was "assessing potential bids" for the future of the refinery and its assets. Shanks stated the decision had been made to give employees "as much notice as possible" while concluding the sales process.

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."

The Insolvency Service said those affected would receive support from the redundancy payments service, and that the official receiver was prioritising the "ongoing process to secure the sale of the refinery".

"This decision was not taken lightly and follows a thorough review of all aspects of the business, following its insolvency," a spokesperson added. "The conduct of the company and its directors, following the liquidation of Prax Oil Refinery, remains the subject of an ongoing Insolvency Service investigation."

Reporting by Iain Gilbert at Sharecast.com