Sunoco Plans To Sell Or Shut Philadelphia, Marcus Hook Refineries

PHILADELPHIA (CBS) – Sunoco officials have announced plans to get out of the refining business, and that’s causing a lot of concern at two local refineries.

Sunoco says it will try to sell its refineries in Philadelphia and Marcus Hook, and if that’s not possible, they’ll be shut down next July.

Dave Miller, president of United Steelworkers’ Union Local 10901 at Marcus Hook, is feeling blindsided.

“Obviously everybody’s in a panic,” he told KYW Newsradio this morning. “We’ve got 400 down here at Marcus Hook, plus some outside agencies at Twin Oaks and quite a few drivers, and everyone’s got the same reaction: a little peeved that she (Sunoco chairman and CEO Lynn Elsenhans) didn’t give anybody, especially the local leadership, any heads up that this was coming.”

Elsenhans has been shutting down plants since she arrived, so Miller admits this is disappointing but not surprising.

A closure would affect about 1,500 people at both facilities.

KYW’s Mike Dunn reports that a spokesman for Mayor Michael Nutter says the administration plans to meet with Sunoco executives “to understand better the company’s plans.”  This discussion, according to the spokesman, would include the potential of a sale of the plant to another refiner.

No date has been set for that meeting.

Reported by Lynne Adkins, KYW Newsradio 1060

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One Comment

  1. jim says:

    Sunoco needs to address their crummy management.Live in the free market system or die.That’s capitalism.

  2. jwoods says:

    To understand Lynns stratagy, one must understand the dynamics of the company itself. Since the 80’s Sunoco has be restructuring itself to focus on logistics (storage and transportation). Sunoco does not explore for or produce oil or natural gas. Therefore when the price of oil skyrockets over 100 dollars a barrel, companies like Exxon Mobil that produce oil enjoy increased profit margins, companies like Sunoco actually lose business because they can’t compete with the prices at the pump.

  3. hadenoughuc says:

    And by laying more off in already bad times means less spending .it will never get better.but there only worried about there fn stocks.get rid of stocks and all things will be better.

  4. hadenoughuc says:

    and the fat at the top can give themselves more but cutting loose the real workers.this is why it is the way it one can spend till we cut out the fat at the top.

  5. Francis Graff says:

    That’s ok. Jim Kenney is attempting to get a bill passed to help new business with 10 or more employee’s to get a two year tax break. This will be a big help.

  6. Tyred says:

    AND, with the potential for significantly reduced local refining capacity, what do you think might happen to the price of petroleum products around here???? Would anyone care to take a wild guess?? Once again, the consumer will have to “assume the position” and bear the consequences.

  7. Manny Ramirez says:

    BIindsided? Seriously? You didn’t see this coming? Did you bury your head in the sand? Any business that loses hundreds of millions of dollars has to know that its days are numbered. What rock were you living under?

  8. Joan_B says:

    And Sunoco is not profitable? …as Lynn makes her $11.5 million in 2010. She sees no problems sending 1,500 people to the unemployment line in this horrible economy. And she’ll import the gas! THIS is what’s wrong with this country!

    1. Guess Who says:

      No, refiners haven’t been profitable recently. But they make a mint if the price of oil rises fast from a low base.

  9. itz says:

    so much for oil subsidies, job creation… just keep paying the top executives to close down ompanies, increase the unemployed and lay idle plants. if Sun can not sell the refineries and they close, are they going to restore the properties to before refinery conditions? i think not, just another rusting hunk of junk by the road. Women CEO’s… look at HP and all of the other corporations that had female CEO’s….

    1. Guess Who says:

      Women execs are being dumped by the boatload…..BAC and Yahoo dumped theirs in the last two days.

  10. Angry Revolutionary says:

    And the hits just keep on coming…..

Comments are closed.

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