Shell to lose seven depots
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SEVEN of Shell UK's smaller oil distribution depots are to be closed by the end of 1983, but customers are unlikely to suffer any adverse effects, according to Shell.
A spokesman confirmed this week that the terminals at Kirkcudbright, in South West Scotland, Heysham, Royston, Silverton, King's Lynn, Falmouth, and Yelland (Devon) would be closed, as a result of a large drop in demand for oil from industry.
Yelland and Falmouth, both of which are staffed by one manager and six drivers, would transfer their work to Plymouth.
The spokesman added that although some of the depots could be sold to distributors with lower overheads, this could not be done at Yelland, because BP facilities are used there.
At this stage, it is not clear whether additional staff will be required at the depots like Plymouth, but the spokesman said it was anticipated that some staff would transfer to where vacancies exist.
But he went on to explain that the plans are still at an early and, essentially, incomplete stage, and that further details will unfold as local consultations continue.
According to Shell, the closures have been forced upon it after a series of drops in demand for oil products. The total demand for oil in Britain from all companies fell from 1 0 5m tonnes in 1973 to 87m in 1979, and fell again last year to 66m, largely as a result of the recession.
Institute of Petroleum statistics show that there was a seven per cent drop in demand for dery from 1980 to 1981, and the only sector to remain buoyant was petrol, which accounts for a quarter of the market, against only a fifth in 1979.