Nynas, has proposed changes to its UK operations that would directly affect the activities and staffing of its Dundee refinery. Under the plans, which are subject to a consultation process, the facility, on the banks of the Tay Estuary, would change from being a production site to a supply depot during the first half of 2014.

The site would continue to be used for manufacturing high-specification bitumen, and would operate and deliver bitumen to Nynas' customers in Scotland. The refining operation is currently under-utilised, with annual demand falling away from its peak production of 280,000 tonnes in 2006 to its present 120,000 tonnes, in line with the drop off in investment in major highways projects in Scotland. Staff needed to operate the facility would reduce from its current 46 to an estimated 20.

Dundee site general manager, Steven Lockhart says: "It is with great reluctance that we have announced these plans, and we will do all we can to minimise difficulty to those employees affected. We have informed all our staff, the union, and our customers and, from the New Year, will enter a period of consultation for at least 30 days.

"Keeping the Dundee refinery for the small volume produced today is not viable as this requires high capital costs for inventory and investments. We have free capacity in the Nynas refinery system to produce the volumes required for the Scottish market and this is more cost efficient. The proposed plan to convert the Dundee refinery into a depot is part of a larger initiative to secure Nynas' position in the UK.

Demand for bitumen products has fallen significantly across Europe over the last ten years and the number of operators in the UK market has declined. However, for Nynas customers in the UK and Scotland the changes in Dundee will mean business as usual.

About Nynas

As we transition to a more eco-sensitive way of life, the oil we refine – and the specialist knowledge used to refine it – will play a vital role. In securing power distribution. Revitalising roads. Providing better shelter. Preventing leakage and corrosion. Removing dangerous particles from tyres. And much more.

See the site off Dundee refinery