In a context of crisis and decline in fuel consumption for several years, refineries in France but also in Europe slowly rotating to 79% on average of their abilities. Moreover, refining activities in France are under international competition increasingly important. To convert the oil into gasoline or diesel, energy demand accounts for nearly 40% of costs. Now, with the development of shale gas, the US has a competitive advantage over European refineries. So much so that Europe buys across the Atlantic from the cheapest diesel that is produced on the old continent.
A four refinery closed in Europe by 2040
According to a report of the French Union of Petroleum Industries ( Ufip) published in March, a quarter of the 79 European refineries should close by 2040 because of excessive deficits. The eight French refineries are not immune to these poor figures, with losses of € 700 million each year. For Total, the loss would be 200 million euros in 2014.
In this situation, the group presented at a central works council (CEC) at its headquarters in La Défense A reorganization plan of these refineries over several years. If in 2009-2010, the formalization of the closure of the Flanders refinery in Dunkirk caused an uproar (several weeks on strike, thousands of tons of trapped crude oil), Total should take tweezers to try to reassure 3800 paid employees in this activity.
Patrick Pouyanné, the CEO of Total, said Monday in Les Echos, no site will be closed and no non-management employee will lead to forced mobility.
Two refineries concerned the Mede and Donges
plan should address at least two refineries: La Mede in the Bouches-du-Rhône and Loire Atlantique Donges. Specifically, the refinery of La Mede (Bouches-du-Rhône) should end the distillation of oil but should develop a biofuel production unit from vegetable oils before the end of 2017. Currently, the refinery, which employs 430 people lost about 150 million euros per year. 178 positions will be eliminated through a redundancy plan.
For the Donges refinery, which employs 680 employees to 200 thousand barrels per day fine, substantial investments should be made. The newspaper Presse Océan, elected officials are hoping that Total will implement a fuel oil treatment center or modernize its diesel manufacturing unit. Much of the 600 million euros will be invested. In exchange, Total would require that the SNCF be moved between Nantes and Le Croisic currently happening on the site. The state, local governments and Total should fund this workaround up to a third each.
DOCXUMENT. The oil market in France (UFIP)
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