Grangemouth chemicals plant to stay open after Government provides £120m funding
The Government is to support chemicals giant Ineos with funding to help secure jobs at the site.
Britain’s biggest chemical plant is to remain open after owner Ineos secured a major Government support package, in a deal which will secure around 500 jobs.
The deal will see the UK Government provide more than £120 million to help keep Ineos’ Olefins & Polymers (O&P) plant at Grangemouth operating, after the future of the site became uncertain earlier this year
Prime Minister Sir Keir Starmer said the move is an investment in “good jobs, stronger communities and a modern economy”.
Meanwhile, Ineos boss and founder Sir Jim Ratcliffe said the funding was “welcome” and would help to support UK manufacturing.
The billionaire has previously been critical of the Labour Government’s energy policies and investment environment in the UK.
The Government and Ineos will together invest around £150 million into the petrochemicals site, which the UK has deemed “strategically important” for its national infrastructure.
Ineos has agreed assurances that funding will only be used to improve the site and allowed the Government a share in future profits.
The chemicals giant said it has spent more than £100 million maintaining operations at the site over the past year.
However, it comes after Ineos shut down its ethanol manufacturing site and oil refinery at Grangemouth earlier this year, which it had linked to high costs.
The Prime Minister added: “When we said we’d protect jobs and invest in Britain’s future, we meant it – and this is proof.
“Through partnership, determination and our modern industrial strategy, we’re delivering new opportunities, fresh investment, and security for the next generation of workers in Scotland.”
Business Secretary Peter Kyle said: “The UK Government’s decision to step in will protect Grangemouth as a site of strategic national importance and secure 500 vital jobs in the area.
“By partnering with Ineos we are backing the plant and its long-term future, giving certainty to workers and the supply chain going forward.”
Sir Jim added: “Through the partnership, Ineos and the UK Government have demonstrated their commitment to operating the site and maintaining jobs.
“The agreement includes safeguards to protect taxpayers’ money, such as strict assurances that the funding can only be used to improve the site, and also gives the UK Government the right to share in future profits.”
Scottish Government Cabinet Secretary for Climate Action and Energy Gillian Martin said: “This is a very welcome announcement.
“The Scottish Government has been calling upon the UK Government for months now to intervene to protect jobs at Grangemouth and Mossmorran at a scale seen in other parts of the UK. This news will give a much-needed boost to the Grangemouth community and the workers at Ineos O&P.
“The Scottish Government announced an £8.5 million investment last week at the Grangemouth industrial cluster including in MiAlgae and Celtic Renewables which will create up to 460 jobs, demonstrating that a long-term industrial future at the site is achievable. We will continue to do all we can, within our limited powers, to achieve that.”
