Britain’s last ethylene plant has been saved and Grangemouth is staying open.
A deal between the UK Government and INEOS secures around 500 direct jobs at the Scottish site with hundreds more protected across the supply chain, ending months of uncertainty over one of the country’s most strategically important industrial assets.
More than £120 million in government support alongside major private investment from INEOS has locked in the future of the plant, which produces ethylene used to make medical-grade plastics and critical materials for automotive aerospace and advanced manufacturing.
Without intervention the site faced closure, threatening regional employment and putting national chemical supply chains at risk.
Instead the government has stepped in to back workers, communities and domestic manufacturing capacity.
The funding package will support ongoing operations while helping improve energy efficiency cut carbon emissions and lift productivity, strengthening the plant’s long-term competitiveness.
INEOS has already spent more than £100 million over the past year keeping the site running.
Ineos boss Sir Jim Ratcliffle said: “Grangemouth is hugely important both economically and strategically. We need jobs. We need home production. We need national security which we lose if we can’t run hospitals or make armaments or transport food.
“The government’s support for Grangemouth is a great start but is only a start in reestablishing a competitive manufacturing base for the country.
We now MUST scrap carbon taxation, the most idiotic tax in the world. It simply squeezes the life out of home production as there is no cash left for investment and we end up replacing home produced goods with imported products from places that still burn coal! An utterly ridiculous tax that kills industry and increases global CO2 emissions. “
Grangemouth also plays a wider strategic role through its connection to the Forties Pipeline System, a key artery for moving North Sea oil and gas onshore.
Losing the site would have sent shockwaves through Scotland’s industrial base.
Support includes measures to cut industrial energy costs through schemes that can reduce bills by up to 25%.
Business Secretary Peter Kyle confirmed the deal during a visit to Grangemouth alongside the Chancellor and the Scotland Secretary.
Labour’s deal with Ineos saves Grangemouth appeared first on Energy Live News.