Small hydroskimming refineries, such as that operated by Petrojam, could no longer compete profitably against modern plants with the capabilities to produce lighter, cleaner burning fuels, said managing director Winston Watson.
He warned that the company's future viability relied on its ability to respond to changing trends. Mr. Watson was speaking to guests at the company's awards ceremony and dinner last Friday.
"We are at a crossroads," he said. "The choice is between the continued growth and profitability of the Petrojam refinery... and becoming obsolete."
Mr. Watson said feasibility studies showed the upgrade to be a viable option and noted that the target date for completion had been brought forward from 2007 to 2005, to coincide with the removal of tariff barriers governing trade in the Free Trade Area of the Americas (FTAA).
Emphasising the importance of a timely decision on the upgrade, Mr. Watson urged the support of stakeholders and investors. "Time is running out. We must act now. We must urgently secure the future of the refinery and, indeed, its positive impact on the Jamaican economy by making the right decision."
His appeal was endorsed by Petrojam chairman Noel DaCosta, who asserted that there were only three years to complete the conversion to "World Class" status. He argued that, with the removal of the ten per cent protective tariff on imported unfinished petroleum products under the FTAA, the refinery could be severely affected.
In keeping with a strategic decision to work towards "World Class performance", Mr. Watson said the management of Petrojam had introduced a "Culture of Excellence" programme through which employees received ongoing training for improved job performance. Other strategies included improvement of the Company's instrumentation, which is far advanced, and a planned upgrade of the refinery's processing unit.
While admitting that the plant upgrade was a costly exercise, Mr. DaCosta warned that failure to modernise operations at the Petrojam refinery, would result in multi-national competitors importing and selling product at a lower price.
