The company has confirmed it will cease refining oil at the site during the second quarter of 2025 onwards due to global market pressures and competition from bigger, more modern and efficient sites in the Middle East, Asia and Africa.

This follows years of loss-making, with the company stating that it has lost more than $775 million (c. £600m) since 2011 despite having invested more than $1.2 billion (c. £1bn) to maintain the refinery’s safe operation.

Speaking to a Holyrood committee, Petroineos, the refinery’s owner, revealed forecasts showing that for every job lost in refining, a further seven jobs are lost in the supply chain. This puts 2,800 supply chain jobs at risk in addition to 400 which will be lost with the closure of Grangemouth.

According to current plans, once closure takes place in Q2 of 2025, only 75 jobs will be kept to continue import and export operations at the site.

Following the closure news, Falkirk East MSP Michelle Thomson claimed she’s held talks with a potential buyer interested in saving the refinery and its jobs.

Ms Thomson told AGCC: “I have had an approach by a person whom I believe to be serious with an appetite and a willingness to buy the Grangemouth refinery in its entirety including its jobs.

“I have had some brief, initial discussions and I believe this to be a serious proposition. However, there is clearly a great deal of work to be done and it is clearly not mine to sell.”

Ms Thomson has not shared any further details about the deal, citing a non-disclosure agreement.

A Petroineos spokesperson responded: “It’s nearly a year since Petroineos first signalled its intention to stop refining at Grangemouth so there’s been plenty of time for potential buyers to express an interest and we would have engaged seriously with any credible proposition.

“We have contacted Michelle Thomson MSP today, with a view to understanding her position.”

First Minister John Swinney met with representatives of the Grangemouth oil refinery workforce following confirmation that refinery operations will end in 2025.

Joined by union representatives and members of local government, the First Minister outlined the Scottish Government’s support comprising a joint package with the UK government worth £100m. It will combine immediate help for affected workers with longer-term investment aimed at securing a sustainable future through the development of alternative green industries at the site and nearby.

The First Minister said: “This is a very disappointing decision – both the Scottish and UK Governments have repeatedly urged Petroineos to continue refining for as long as possible, and there is no doubt that this represents an economic shock.

“We have worked very closely together to come up with a significant package that will provide immediate tailored career support for affected workers at Grangemouth refinery, while longer-term projects get up and running on the site.

“The Falkirk and Grangemouth Growth Deal will support the development of new industries across the region, including a bioeconomy plant; a low-carbon technology centre; and an employment hub. And we are taking forward at pace the work already begun through Project Willow, which has shortlisted three credible potential industries - low-carbon hydrogen, clean e-fuels and sustainable aviation fuels - that could be hosted on the refinery site in the future.

“We are in intense dialogue with the trade unions, the company and Falkirk Council and I want to reiterate my assurance that we will continue to work collaboratively with them and the UK Government to secure sustainable, skilled jobs in Grangemouth for many years to come.”