UK Government and Ineos Invest £150m to Protect Jobs at Grangemouth Chemical Complex
The UK government is investing £120 million alongside a £30 million contribution from Ineos, totaling £150 million, to safeguard approximately 500 jobs at the Grangemouth complex. Grangemouth, the UK's last ethylene plant and a crucial producer of plastics, stands to benefit from this package described as saving the plant.
The funding aims to secure supply chains and support long-term low-carbon manufacturing, with commitments to improve the site and potential for the government to share in future profits. This move comes against the backdrop of the 2024 closure of the Grangemouth refinery, which will result in 400 job losses, and ongoing concerns regarding the Mossmorran facility in Fife due to high energy costs impacting UK chemicals.
Officials have highlighted the strategic significance of the investment for both Scotland and the UK, with Prime Minister Keir Starmer emphasizing the protection of jobs and future opportunities. Additionally, Chancellor Rachel Reeves has pledged £14.5 million for Grangemouth's transition to low-carbon technology.
Some criticism has been noted over a £200 million pledge to the National Wealth Fund, and unions have reportedly made limited progress on issues affecting the wider industry. Uncertainty remains over NatWest's involvement in the funding arrangements. Ineos has already invested over £100 million to maintain operations, and there are plans to develop a green energy hub on part of the site left vacant by the refinery's closure.
