February 12 (SeeNews) - Croatian oil and gas company INA [ZSE:INA] said it has discussed the closure of the fluid catalytic cracking (FCC) plant at its Sisak refinery with trade unions.
"In the spirit of dialogue and open communication with social partners, representatives of the company answered the asked questions and gave trade union representatives a more detailed explanation of the business decision made by INA in order to optimise refinery operations and reduce losses generated by the Sisak Oil Refinery", INA said in a statement late on Friday, without disclosing further information.
In January, INA said it will shut down the FCC plant as Sisak, after a Deloitte analysis showed that a conversion of the refinery into a logistics centre is the most cost-effective solution. The move will a step towards a significant reduction in the losses that the refinery generates, INA said.
The closure of the FCC plant will, however, see 40 employees lose their jobs in 2018, sparking outrage among the unions.
Local media have reported that company employees are worried that INA is preparing to completely halt production in Sisak.
Last August, INA decided to transfer crude oil stored in Sisak to a refinery in the port city of Rijeka for processing. At the time an employee told Croatian news agency Hina that INA's parent company, Hungary's MOL, wants to close the Sisak refinery as it is the chief competitor to MOL's refineries.
MOL is the biggest shareholder in INA with a 49.08% stake. The Croatian government owns 44.84%, with the remaining 6.08% is held by institutional and private investors.