BP reports record production at Ohio refinery despite strike

By Jarrett Renshaw

NEW YORK (Reuters) - BP Plc (BP.L) is producing record levels of diesel and jet fuel at its 160,000 barrel-per-day refinery in Toledo, Ohio, despite an ongoing strike by workers that has now stretched more than two months, according to a letter seen by Reuters.

BP, which jointly owns the facility with Husky Energy Inc (HSE.TO), sent the letter to employees on Friday.

The letter also noted that its 55,000-bpd catalytic cracker produced record volumes last week. The cracker, the facility's main gasoline producing unit, was unexpectedly shut down just before workers walked out of the plant on Feb. 1.

BP said the two sides have reached an agreement on most local issues, but they are still divided on the use of outside contractors at the facility. Most of the outside contractors are from the unionised building trades, pitting two traditional allies against one another.

"The company's ability to make key decisions is necessary to remain competitive and ensure job security for the entire workforce," the letter stated.

Scott Dean, a BP spokesman, said in an email Tuesday: "The employee note we sent around Friday is accurate. Talks continue."

The local chapter of the United Steelworkers at the Toledo refinery is one of the few that have not returned to work following the nation's largest refinery strike in decades.

Local union officials did not immediately respond to requests for comment.

(Reporting by Jarrett Renshaw; Editing by Lisa Shumaker)