Under the refining restructuring plan, the company intends to modernize the Donges refinery in western France, with an investment of €400m in order to capture profitable new markets with low-sulfur fuels.
About €200m will also be invested to transform the La Mède refinery and create France’s first biorefinery aimed to meet growing biofuels demand. The refinery’s crude oil processing will be stopped in 2016.
The comprehensive plan will enhance performance and secure the long-term future of the two refineries, which are struggling with the volatile economic environment and are structurally loss-making.
Total’s other three refineries in France, Gonfreville in Normandy, Grandpuits in the Paris region and Feyzin near Lyon, continued to generate income for the company in 2013 and 2014.
Total CEO Patrick Pouyanné said: "There are three possible responses to the crisis in the European refining industry. The first is to throw in the towel. The second is to do nothing and perish. The third is to innovate and adapt to meet shifting demand trends.
"The central focus of Total’s plan for our French refining business is to realign our operations and products to changing markets.
"It gives both facilities a future and strengthens Total’s refining base in France.
"Total will implement this industrial transformation without layoffs or imposed geographical transfers for non-exempt employees."
