The UK government has awarded £120m in funding to Ineos to safeguard the future of the country's last ethylene plant at Grangemouth, a move expected to protect more than 500 jobs. The chemicals company, led by billionaire Jim Ratcliffe, will contribute an additional £30m to the project.
The government said the investment was necessary to preserve a vital part of the UK's chemicals infrastructure, with ethylene production essential for medical-grade plastics, water treatment, aerospace and car manufacturing. Prime Minister Keir Starmer said the funding demonstrated the government's commitment to backing British industry, while Mr Ratcliffe said it would protect high-value jobs and secure supply chains.
The deal comes amid political pressure over earlier job losses at Grangemouth, where Ineos closed an oil refinery it co-owned with PetroChina earlier this year. The government also faced criticism after rejecting pleas to invest in ExxonMobil's ethylene plant in Fife, which is set to close in February with the loss of 429 jobs. With Scottish parliament elections due in May, opinion polls show Labour trailing the Scottish National Party.
Separately, nearly £10m has been allocated for new low-carbon green chemicals factories at Grangemouth, expected to create up to 310 jobs by 2030. A university startup, MiAlgae, plans to produce omega-3 from whisky byproducts, while Celtic Renewables will manufacture chemicals from whisky and agricultural waste.
Ineos is also preparing for significant job cuts across its global workforce, including 60 roles at its Hull site and a fifth of jobs at its East Yorkshire plant, after closing two factories in Germany. The company blamed high energy costs and cheap imports from China, accusing Europe of "industrial suicide" through green policies.
