HF Sinclair to end base oil refining at Mississauga plant by 2027
Dallas-based energy firm HF Sinclair plans to end base oil refining at its Mississauga, Ontario facility by 2027, effectively shutting down Canada's largest producer of the refined oils that power engines, turbines, and industrial machinery nationwide.
The news was met with sharp criticism from Unifor, the union representing the site's workers, which warned the decision threatens domestic supply chain security.
The Mississauga facility is the largest base oil producer in Canada, boasting a production capacity of approximately 15,600 barrels per day. It also serves as the nation's only significant source of Group II and Group III base oils—the refined components essential for manufacturing engine oils, hydraulic fluids, and industrial lubricants.
Under HF Sinclair’s transition plan, Canadian demand for these base oils will instead be supplied by two unnamed global manufacturers alongside HF Sinclair’s refinery in Tulsa, Oklahoma.
While base oil refining will cease, the Mississauga location will continue operating as a blending and packaging site for imported base oils under the Petro-Canada Lubricants brand.
READ: Parkland appoints Michael Jennings to its Board of Directors
Union condemns foreign decision, calls for government intervention
Unifor leadership denounced the move, pointing to the risk of transferring critical manufacturing capabilities outside Canadian borders.
"This is a reckless decision made in a Dallas boardroom by people who will never have to look these workers in the eye," said Lana Payne, Unifor national president in a press release. “We are about to hand control of that supply to producers in other countries at the exact moment governments here are telling us supply chain security matters.”
Unifor Ontario regional director Samia Hashi emphasized the essential role of base oil production across primary industrial and automotive sectors.
"Every truck, every train, every mine and every factory in this country runs on lubricants," Hashi said in the same release. "Skilled Canadians built this plant's safety record and its reputation, and they are being told their work is being shipped out of the country. Ontario workers are paying for a decision that makes this country less secure."
Timeline and impact on workers
The separation process is expected to take 12 to 18 months and does not require a shareholder vote.
Approximately 250 unionized workers at the Mississauga facility are represented by Unifor Local 593. Unifor is calling on HF Sinclair to immediately confirm the exact timeline and total number of affected jobs, as well as hold a meeting with the union before proceeding further.
Additionally, the union is urging both the federal and Ontario provincial governments to explain the regulatory tools available to prevent foreign owners from shutting down Canadian refining capacity.
Unifor is Canada's largest private-sector union, representing 320,000 workers across various sectors of the economy.
