Sunoco Idling Refinery, Dropping 400 Workers

Sunoco is the first major oil refiner to shut down a large refinery in the U.S. during the current economic downturn, according to the Wall Street Journal online. Sunoco will idle its Eagle Point refinery in Westville, N.J., furlough 400 workers and cut its dividend.

The company says it will shift production to nearby facilities in Marcus Hook and Philadelphia. It says storage and handling operations at Eagle Point will continue.

Workers were given notice of the impending closure via email Tuesday afternoon.

"Basically, they were regretfully to inform us that they were going to close Eagle Point refinery," Rick Pabulese said of the message.

Sunoco is trying to cut losses in its refining business. The company says the recession, weak demand for refined products, and increased global refining capacity have made it hard to make a profit.

For Pabulese, the closure has left him wondering what will happen – both he and his fiancé work for the plant. "We have a $2,000 a month mortgage, we have credit card bills, car payments, so I don't know if unemployment's gonna cover that or not."

But he's not mad about the cutbacks. "I'm not angry," said Pabulese. "I just hope that I've been a good worker and that hopefully Sunoco will look at me and you know hopefully they'll offer me a job again when the economy comes back."

The layoffs will be phased in over the next four to six weeks, according to a Sunoco spokesperson.

The company also says it will cut its dividend in half -- to 15 cents per share, down from 30 cents per share previously. The lower dividend takes effect in the first quarter of 2010.