In order to achieve better operational and cost efficiency, the company plans to closely integrate operations at the two Finnish refineries refinery and will manage them as one system, with four production lines at Porvoo and a fifth at Naantali.
The integration could cut Neste Oil’s employees by approximately 250, primarily in Finland and will also close the existing units at Naantali.
Neste Oil president and CEO Matti Lievonen said: "The investments that we’re planning, when completed, will help us reach our long-term profitability target.
"We intend building an SDA (solvent de-asphalting) unit at Porvoo costing EUR 200 million and implementing process enhancement investments valued at EUR 60 million at Naantali, as internal projects.
"The EUR 250 million power plant investment planned for Porvoo will be carried out through an off-balance sheet joint venture."
"Given the substantial overcapacity that exists in the oil refining sector in Europe, we need to look at a broad range of solutions for improving our competitiveness and securing the foundation of our future operations and growth," says Lievonen.
The investments will be made for the development of an €200m SDA feedstock pre-treatment unit at Porvoo, which is slated for completion in 2017, to improve the company’s production structure and ability to optimize its crude oil slate.
Approximately €60m will also be invested by the company to structure the Naantali refinery though various utility-related enhancements.
Basic engineering on these projects will be completed in early 2015 followed by a final decision on the individual investments which will be completed in early 2017.
