UK’s £150m lifeline secures Grangemouth plant and thousands of jobs
The UK government and INEOS have agreed a £150 million deal to secure the future of the Grangemouth chemical plant in Scotland. The investment includes a £75 million loan guarantee and a £50 million grant from public funds, alongside private funding from the company. Officials say the move will protect jobs and support key industries relying on the site’s production.
The Grangemouth ethylene facility plays a vital role in Britain’s infrastructure. It supplies essential materials for medical plastics, water treatment chemicals, and advanced manufacturing. The plant is also connected to the Forties Pipeline System, which brings North Sea oil and gas onshore.
INEOS has already spent over £100 million keeping the plant operational in the past year. Under the new agreement, the company will invest further, while the government contributes more than £120 million in support. The deal includes strict conditions on how public money is used and ensures INEOS meets operational targets.
Prime Minister Keir Starmer, Chancellor Rachel Reeves, and Business Secretary Peter Kyle have all backed the plan. They describe it as a key part of the government’s Industrial Strategy, aimed at cutting emissions, boosting energy efficiency, and increasing productivity at the site. INEOS chief executive Sir Jim Ratcliffe called the investment a strong vote of confidence in British business.
The funding package will help modernise the Grangemouth plant while securing its role in critical supply chains. The government’s support comes with safeguards to ensure public money is spent responsibly. The deal is expected to stabilise operations and support long-term business growth in the region.
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