HUNDREDS of workers at a Teesside refinery are being warned of redundancy after attempts to find a buyer for the site have so far drawn a blank.

Formal consultations with the 150 employees at the Petroplus refinery, on North Tees, are now under way, after doubts over the site’s future increased.

The development is the latest blow to hit Teesside in the past few weeks, following the 428 job losses at four Corus plants across the area, and the doubts over the jobs of 3,000 people at the Redcar Teesside Cast Products (TCP) plant.

Petroplus insisted the consultation was one of a number of avenues it was pursuing, but unions said it was not a good sign for the future of the refinery, which slashed production last December to work at 30 per cent capacity after poor margins.

Petroplus announced in February it would be looking to sell the refinery, or that it may be converted into a terminal or storage facility if a buyer could not be found.

Unions have warned that a significant number of jobs could be at risk if the refinery was converted, and last night renewed calls for Petroplus to do everything possible to find a buyer.

Bob Bolam, regional organiser for the Unite union, said he was concerned for the future of the refinery’s 150 staff.

“I am very concerned that the company is going ahead with the consultation process and that a buyer for this plant has not been found. I would urge the company to explore every avenue to try to sell this as a going concern,” he said.

“This is another piece of the Teesside economy that could be lost forever, after a series of closures and redundancies. I would call upon the Government to take action to look after the interests of the people on Teesside.”

In a statement from Petroplus yesterday, the company said the site remained under strategic review.

“Petroplus is now entering a consultation process with employee representatives to discuss the future of the local workforce. This is a continuing part of the strategic evaluation of alternatives,” it said.

“Several options are under consideration, including the potential sale of the refinery or conversion to a terminal or storage facility.”

In the firm’s results for the fourth quarter of last year, it saw a second straight loss because of low demand for fuels.

Net loss was £528.4m, compared with a profit of £93.4m the previous year.