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The UK government has committed £120 million toward supporting the Grangemouth industrial complex, with its owner, Ineos, adding a further £30 million to the investment package. This combined £150 million funding plan aims to safeguard the future of the nation’s last ethylene production facility, which employs around 500 people and plays a vital role in plastics manufacturing. Officials have described the deal as securing the survival of the Grangemouth site.
Sir Keir Starmer, the Prime Minister, emphasized that this move highlights the government’s dedication to protecting jobs and fostering growth in industrial areas like Grangemouth. He stated: “We’re delivering new opportunities, fresh investment and security for the next generation of workers in Scotland. Our commitment is clear; to back British industry, to stand by hardworking families, and to ensure places like Grangemouth can thrive for years to come.”
The Grangemouth complex relies on shale gas imported by ship from the United States to produce ethylene, a crucial component used widely in advanced manufacturing sectors including automotive and aerospace. Situated alongside the Grangemouth oil refinery, the site experienced a major change in April when the refinery ceased crude oil processing and transitioned to an import terminal for finished fuels, resulting in the loss of 400 jobs. Earlier this year, Ineos chairman Sir Jim Ratcliffe warned that Britain’s chemical industry was under threat because of rising energy costs and carbon taxation.
Sir Jim Ratcliffe welcomed the new investment as a strong signal of Ineos and the UK government’s determination to support British manufacturing. He said the funding “protects 500 high-value jobs, secures supply chains, and preserves the industrial capacity the nation needs.” Furthermore, he noted that “the support of the UK government is welcome as we work to deliver competitive and efficient low-carbon manufacturing for the UK, long term.” Concerns have mounted recently about the future of the UK’s petrochemical sector, especially as ExxonMobil announced plans last month to close part of its Mossmoran chemical plant in Fife—another ethylene producer—resulting in up to 400 job losses. The company cited high energy prices as a factor in that decision. The government has acknowledged that rising energy costs have led to closures or threats to roughly 40% of ethylene production capacity across Europe.
Efforts by both the UK and Scottish governments to mitigate job losses in the sector have included a joint pledge to develop a green energy hub at Grangemouth, utilizing part of the site vacated by the refinery closure. Chancellor Rachel Reeves included £14.5 million in the recent budget to back the transition to low carbon and renewable industry at Grangemouth. However, criticisms have been voiced regarding delays in delivering promised funds, specifically the £200 million from the National Wealth Fund. Trade unions representing workers at Grangemouth have accused both governments of insufficient and tardy action.
As the Scottish Parliament election approaches, securing the future of this major industrial site has become a political priority. Ineos has accepted conditions ensuring future government funding is dedicated to site improvements, granting the government a share in any future profits. The company has also invested over £100 million in maintaining operations during the past year. In addition, Natwest is involved in ways not yet fully detailed, with a stated focus on accelerating regional growth
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