The Royal Dutch Shell Plc (RDSA) has said that its refinery in Geelong is facing increasing challenges including more competition from larger refinery.
One of the company officials have said that the future of the refinery in as "borderline". The company has indicated that the performance of the unit in the coming years will determine if the company will continue to operate the facility.
Mark Williams, who is the global director for downstream at Shell, said that the operations of the refinery remain questionable. The company said that refineries in Australia face increasing competition from those in Asia.
Company spokesman Paul Zennaro said, "Geelong Refinery faces challenges, including increased competition from new mega-refineries in Asia. Shell employees are working to make the refinery more competitive with a continued focus on safety while enhancing profitable niche products including Avgas, bitumen and solvents."
The company had invested $47.5 million in a new water processing plant and $20 million in new bitumen facilities at the Geelong plant. The plant, which is among the largest hydrocarbon refineries in Australia, employs about 400 people.
Meanwhile, GEELONG'S mayor John Mitchell has said that he is ready to for federal and Victorian government assistance to help the refinery.