Tosco Restructures Unit, Shuts Plants

Tosco Corp., one of the largest U.S. oil refiners, said its 76 Lubricants unit will shut plants in California and Oregon to cut costs as high oil prices and flat sales cut into profit. A blending and packaging plant in Richmond, Calif., and a packaging plant in Portland, Ore., will be shut down and operations moved to Los Angeles, 76 Lubricants President Garry Rooney said. A bulk lubricants plant in Portland will remain open. Rooney said 57 positions at the plants will be eliminated in the cuts, and up to 50 employees will be fired. The company expects to save about $5 million a year through the restructuring. Tosco said high oil prices, mergers in the lubricants industry and flat sales made the cuts necessary. Stamford, Conn.-based Tosco, which owns 6,500 gas stations in 30 states and the Circle K chain of convenience stores, said the effect of the restructuring on customers would be limited. Tosco shares fell $1.06 to close at $28.31 on the NYSE.

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