Workers whose jobs are affected by the closure of some activities at a loss-making oil refinery in the central town of Sisak will be offered other positions, Croatia’s Prime Minister Andrej Plenkovic said on Wednesday.

Sisak’s 60,000 barrel-per-day (bpd) refinery is owned by Croatian energy firm INA which is in turn owned by the Croatian government and Hungary’s MOL.

INA, which also owns a bigger refinery with a 100,000 bpd capacity in the northern Adriatic city of Rijeka, said last week it planned to close the fluid catalytic cracking facility (FCC) in Sisak to make better use of facilities in both refineries.

It said that the measure would cut 40 jobs in the second half of this year, but trade union representatives for the Sisak refinery said they feared it was the first step towards the closing down the entire plant.

“The workers hit by this measure would be offered adequate other jobs in the refinery,” Plenkovic told a cabinet session, according to Reuters.