Prime Highlights:
- UK government and Ineos announce a £150 million package to secure 500 jobs at Grangemouth industrial complex.
- The deal ensures the future of the UK’s last ethylene plant, supporting advanced manufacturing, automotive, and aerospace industries.
Key Facts:
- The UK government will contribute £120 million, while Ineos adds £30 million to the investment.
- Grangemouth relies on imported shale gas from the United States to produce ethylene, a key ingredient in plastics.
Background:
A £150 million support package has been announced to safeguard jobs at the Grangemouth industrial complex. The UK government will contribute £120 million, while owners Ineos will add £30 million to protect 500 positions at the site.
Scottish Secretary Douglas Alexander described the deal as a “stark contrast” to the closure-hit Mossmorran chemical plant in Fife, which is due to close in February with the loss of up to 400 jobs.
Grangemouth, the UK’s last ethylene plant, produces a key ingredient for plastics used in advanced manufacturing, automotive, and aerospace industries. The facility relies on shale gas imported from the United States.
Prime Minister Sir Keir Starmer praised the joint investment, saying it would protect jobs and ensure the site’s long-term future. “Our commitment is clear: to back British industry, stand by hardworking families, and ensure places like Grangemouth can thrive for years to come,” he stated.
Ineos Chairman Sir Jim Ratcliffe highlighted that the investment demonstrates both Ineos and the government’s commitment to British manufacturing. “It protects high-value jobs, secures supply chains, and preserves the industrial capacity the nation needs,” he said.
The package also comes amid rising concerns about energy costs affecting the UK chemicals sector, with the recent closure announcement at ExxonMobil’s Mossmorran plant underscoring the challenges.
The UK and Scottish governments have jointly committed to supporting a green energy hub at Grangemouth, on land left vacant by the refinery closure earlier this year. Scottish Climate and Energy Secretary Gillian Martin welcomed the news, noting that it provides a “much-needed boost” to the local community and workers.
Ineos has assured that the funding will be used exclusively to improve the site, with the government securing a share in future profits. Over the past year, the firm has invested more than £100 million in maintaining operations at Grangemouth.
The support package underlines the government’s determination to sustain chemical production in the UK and maintain the country’s industrial capabilities for the future.