SA: Port Stanvac refinery safe for now

AAP General News (Australia)
12-01-1999
SA: Port Stanvac refinery safe for now

ADELAIDE, Dec 1 AAP - The Port Stanvac oil refinery is expected to continue operating
- at least in the short-term - following the federal government's support for an industry
restructure.

Management at the Mobil refinery said today the operation was viable despite making
a loss in recent years, and could carve itself a niche in the Australian and global market.

The refinery, on Adelaide's south coast, has undergone a $100 million upgrade in recent
years and now boasts the largest lubes facility in the country.

Organisation development manager Dennis Casaretto said the 400 workers at the refinery
were committed to turning the business around and making a profit.

"We have looked at maximising our strengths, we can supply specialty products which
lubes does ... we believe we can make the refinery viable," Mr Casaretto told AAP.

His comments follow the federal government's pledge to support petroleum companies
in their bid to get approval from the Australian Competition and Consumer Commission for
oil refinery mergers.

The move is expected to launch a new round of consolidation activity in the industry,
after refinery merger plans by dominant industry players BP, Caltex, Shell and Mobil fell
apart this year when they attracted the ACCC's ire.

Premier John Olsen said the government had held talks over recent months with Mobil
and the local council in an effort to retain the business, which indirectly supports a
further 2,000 jobs in the state.

But Opposition Leader Mike Rann said the federal government had sold out Port Stanvac
workers by giving the go-ahead to mergers.

"Joint ventures, rationalise and possible mergers are all code for the closure of refineries
and Port Stanvac has already been singled out simply because of its size and location,"

Mr Rann said in a statement.

"(The federal government) has delivered a slap in the face to the dedicated, hardworking
Mobil workforce, who have done everything they possibly could to make Port Stanvac internationally
competitive."

However, federal Industry Minister Nick Minchin said refineries would be closed if
the industry was not allowed to restructure to compete with the large Asian refineries.

"I would hope as a result of our action plan the industry will be able to get involved
in joint ventures which means that Port Stanvac will remain," he told ABC radio.

"The Port Stanvac refinery has a proud record and a great workforce and I'm certainly
doing my best to encourage Mobil to plan a strong future for Port Stanvac."

AAP sn/cjh

KEYWORD: REFINERS SA NIGHTLEAD

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