Major Refinery Closure
Unifor Condemns HF Sinclair's Plan to Shut Down Canada's Largest Base Oil Refinery
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Dallas-based HF Sinclair plans to shut down base oil refining at its Mississauga, Ontario plant by 2027, wiping out Canada's largest producer of the refined oils used in every engine, machine, and industrial system in the country, according to National Post. The facility is also the only significant Canadian source of Group II and Group III base oils — the higher-quality lubricants used in modern engine oils and hydraulic fluids.
Canada's largest private-sector union, Unifor, swiftly condemned the move. National President Lana Payne called it a "reckless decision made in a Dallas boardroom by people who will never have to look these workers in the eye," according to Financial Post. The union is now pressing both the federal government and Ontario to step in before the capacity is gone for good.
What HF Sinclair Plans to Do Instead
HF Sinclair will not simply close up shop entirely. The company says it will keep supplying base oils to its Canadian customers — but from two unnamed global manufacturers and from its own refinery in Tulsa, Oklahoma, according to Financial Post. That means Canada's supply of these critical products will shift from domestic production to foreign imports.
The Mississauga plant itself will not be demolished. HF Sinclair has said it plans to repurpose the site, though the company has not given details on what that means for workers currently employed there, according to Leader Post.
Why Base Oils Matter to Every Canadian Industry
Base oils are the raw material in nearly every lubricant used in Canada. They go into engine oils that keep cars and trucks running, hydraulic fluids that power heavy equipment, and industrial lubricants used in factories. Group II and Group III oils are the most refined types — they perform better in extreme temperatures and last longer than older-grade oils.
Canada currently has no other significant domestic source of Group II or Group III base oils, according to Montreal Gazette. If the Mississauga plant closes, Canadian manufacturers and drivers would depend entirely on imports for these products. That raises concerns about supply security, especially during trade disruptions or international conflicts.
Unifor Calls on Ottawa and Queen's Park to Act
Unifor is urging both the federal government and the Ontario provincial government to intervene before the 2027 deadline. The union argues that foreign owners should not be allowed to quietly dismantle critical Canadian industrial capacity, according to Sudbury Star. The call to action comes at a time when Canada is already debating economic sovereignty in the face of U.S. trade pressure.
Payne's statement framed the shutdown as part of a broader pattern. "This is what it looks like when Canadian workers and Canadian industry are treated as expendable," she said, according to Chatham Daily News. So far, neither the federal government nor Ontario's provincial government has publicly responded to the union's call for intervention.
The Bigger Picture: Foreign Owners, Domestic Losses
HF Sinclair is headquartered in Dallas, Texas. It operates refineries and fuel distribution networks across the United States. The Mississauga plant is one of its few major assets outside the U.S. The decision to end Canadian refining fits a pattern of U.S.-based energy companies pulling back from Canadian operations, according to Shore Line Beacon.
For Unifor, the stakes go beyond one plant. The union represents workers across Canada's energy and manufacturing sectors. It argues that losing the Mississauga refinery would set a damaging precedent — showing that foreign companies can exit critical industries with little pushback from Canadian governments, according to The Observer.
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