Jessica O'Connor500 jobs at the Grangemouth chemicals plant have been secured following a landmark agreement between the Government and INEOS, ending uncertainty over the future of Britain’s last ethylene production facility.
Under the deal, the Government will provide more than £120m as part of a £150m joint investment package with INEOS, protecting the plant’s operations and safeguarding hundreds more jobs across the regional supply chain.
The agreement also secures a long-term operational commitment from INEOS and investment to improve energy efficiency, cut emissions and boost productivity.
The Grangemouth site is considered strategically important to the UK’s critical national infrastructure, supplying ethylene used in medical-grade plastics and across key industries including advanced manufacturing, automotive and aerospace.
Without intervention, closure of the plant would have put thousands of jobs at risk across Scotland.
Prime Minister Keir Starmer said the deal demonstrated the government’s commitment to protecting employment and industrial capability.
He said: “When we said we’d protect jobs and invest in Britain’s future, we meant it – and this is proof.
“Through partnership, determination, and our Modern Industrial Strategy, we’re delivering new opportunities, fresh investment, and security for the next generation of workers in Scotland.
“This is about good jobs, stronger communities, and a modern economy that works for everyone.
“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.”
Business Secretary Peter Kyle said: “The UK Government’s decision to step in will protect Grangemouth as a site of strategic national importance and secure 500 vital jobs in the area.
“By partnering with INEOS we are backing the plant and its long-term future, giving certainty to workers and the supply chain going forward.
“This approach is part of our Modern Industrial Strategy through which we are working to reduce the cost of energy for industry and support manufacturing in the UK.”
Chancellor Rachel Reeves said the package would protect livelihoods and national resilience, while Scottish Secretary Douglas Alexander described the investment as a “landmark moment” that safeguards thousands of jobs linked to the site.
INEOS CEO Sir Jim Ratcliffe added that the partnership underlined the importance of manufacturing in Britain.
He noted: “This £150m investment in the future of a major UK industrial site demonstrates INEOS and the UK Government’s commitment to British manufacturing.
“The support of the UK Government is welcome as we work to deliver competitive and efficient low-carbon manufacturing for the UK, long term.
“UK Government support for INEOS’ investment shows the strategic importance of making things in Britain. It protects 500 high-value jobs, secures supply chains and preserves the industrial capability the nation needs.”
