ONE of Hampshire's biggest companies has been accused of "economic terrorism" by a union whose members are due to go on strike from their Scottish oil refinery at the weekend.

Up to 1,200 workers at the Ineos refinery in Grangemouth are due to take industrial action on April 27 and 28 in a row over pensions.

The action could trigger fuel shortages across Scotland, it is feared. Panic-buying of petrol at Scottish forecourts has already been reported.

Lyndhurst-based Ineos, Britain's biggest privately owned company, said it was preparing for a total shutdown of the plant by Friday, two days before the industrial action is due to start.

The Unite trade union said the company's plans to "close down Scotland" were a disgrace.

Mark Lyon, Unite's Grangemouth organiser, said the union had a discussion some weeks ago with Calum Maclean, chief executive of Ineos Refining.

Mr Lyon said: "He told us that Ineos' strategy in the event of us announcing industrial action would be virtually to close down Scotland and close down the economy of Scotland.

"In his words, what he said was, once the forecourts are empty, once the airports are closed and the economy shut down, this would provide a favourable negotiating climate for Ineos and it might force the unions to concede pensions. Now this is economic terrorism and it's absolutely disgraceful."

The company strongly refuted the "economic terrorism" claim. An Ineos spokesman said: "There's absolutely not a shred of evidence or truth in what Mark Lyon is saying. What's important right now is that we get back to talking. We need to sort this problem out."

The company maintains there will be an impact on fuel this week, when the first of the site's crude oil units is switched off. Motorists were urged not to rush to fill up their tanks as this could speed up shortages.

Panic-buying Industry experts said there had been signs of panic-buying in the country's major cities, although rural areas had not yet been affected. Douglas Robertson, chief executive of the Scottish Motor Trade Association, said there had been "scaremongering" on both sides of the dispute, and advised drivers to behave normally.

New Forest-based engineer turned successful entrepreneur Jim Ratcliffe founded Ineos just nine years ago. Today it is the world's third bigggest petro-chemicals company with sales of £18 billion. As Ineos' principal shareholder Mr Ratcliffe has seen his personal fortune balloon to an estimated £3.3 billion.