Major funding deal secures 500 jobs at Grangemouth chemicals plant

Around 500 jobs at Britain’s last ethylene plant at Grangemouth have been protected after a major funding deal was agreed with owners INEOS.

The UK Government said on Wednesday it has committed more than £120m as part of a £150m joint investment with the chemicals giant, which it says will protect hundreds of additional jobs in the wider supply chain.

The development comes just months after Petroineos – a joint venture between INEOS and PetroChina – announced it had stopped the processing of crude oil at the Grangemouth refinery after a century of operations, resulting in the loss of 400 jobs.

With the refinery closing, the main industry at the plant is now the production of chemicals like ethylene, polyethylene and polypropylene, which are components in the manufacture of plastics.

Prime Minister Keir Starmer 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.”

The UK Government said its intervention forms part of its Modern Industrial Strategy, which identifies chemicals as a foundational sector underpinning high-growth industries such as defence and advanced manufacturing.

Last week, it was announced that around 310 jobs will be supported at Grangemouth and across Scotland over the next five years by the Scottish company MiAlgae.

It has started construction on its first commercial-scale manufacturing facility, which will transform whisky waste into fish-free Omega 3 after receiving £3m in UK and Scottish Government backing.

Separate support measures have also been announced for workers affected by the planned closure of the ExxonMobil Mossmorran plant in 2026, alongside investment in new green manufacturing projects and expanded training guarantees for the local workforce.

Scottish secretary Douglas Alexander said: “The UK Government is investing £120m today to protect jobs and secure future opportunities at Grangemouth.

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

“This is a landmark moment for Grangemouth. This £120m UK Government investment protects not just the 500 jobs at the plant, but thousands more across Scottish supply chains.”

INEOS CEO Sir Jim Ratcliffe said: “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.”

Climate action and energy secretary Gillian Martin said: “This is a very welcome announcement. The Scottish Government has been calling upon UK Government for months now to intervene to protect jobs at Grangemouth and Mossmorran at a scale seen in other parts of the UK. This news will give a much-needed boost to Grangemouth community and the workers at Ineos O&P.

“The Scottish Government announced £8.5m investment last week at the Grangemouth industrial cluster including in MiAlgae and Celtic Renewables which will create up to 460 jobs, demonstrating that a long term industrial future at the site is achievable. We will continue to do all we can, within our limited powers, to achieve that.”