Grangemouth ethylene plant saved with £150m investment

THE UK’s last ethylene plant will continue operating for at least five more years following a £150m (US$200m) government support package, securing 500 jobs.

INEOS had planned to close the plant due to operational losses and a projected decrease in fuel demand, citing high UK energy prices, carbon taxes and the “hollowing out” of the manufacturing sector. The company has spent more than £100m over the last year maintaining the site.

With the government support package and a £30m INEOS contribution, the plant will continue production and improve energy efficiency, primarily by reducing carbon emissions. The facility remains a key contributor to UK plastics manufacturing and the automotive and aerospace industries.

UK prime minister Sir Keir Starmer said: “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. Promise made, promise delivered.”

Grangemouth's future

The region’s industrial landscape is evolving. A new industrial-scale biorefinery operated by Celtic Renewables is expected to create around 149 jobs, while biotech MiAlgae has announced a new manufacturing facility, projected to generate more than 310 jobs over the next five years.

Earlier this year, the Scottish government set up the £25m Grangemouth Transition Fund, supporting a low-carbon energy hub, Project Willow, and workers facing redundancy at the Petroineos refinery and Finnart Terminal.

Douglas Alexander, the Scottish secretary, said: “Grangemouth has been at the heart of Scotland’s industrial story for generations and today we’re ensuring it remains central to our future.”