Z Energy says its Gracefield chemical manufacturing business will close early next year.
The company said it had secured agreements with a major customer which will allow it to keep the facility operating until March 2014, at which point the business will be shut down.
The service station chain, which is about to float on the stock exchange, said it had been trying unsucessfully to sell the business for the past two years.
Commercial general manager Lindis Jones says closing the plant was a very tough decision to make and the company has worked hard to reach an agreement to enable it to continue for the next few months.
Mr Jones said the chemicals business has been struggling for some time and though it is unwelcome news for the eight staff at the plant, the deal does give them nine further months to plan their futures.