MORE than 500 jobs are now secure thanks to a £7.6 million cash injection to upgrade a petrochemical plant.
The Scottish Government's Regional Selective Assistance (RSA) grant award will allow Ineos to make major improvements to its Grangemouth site, safeguarding jobs and keeping the country's oil supply flowing.
Ineos has already invested £45 million t
o upgrade the site and the RSA grant will support the firm's further investment of £65 million – making a total investment of £110 million in the future of the Grangemouth plant.
Gordon Grant, Ineos works general manager, said: "We are very pleased to have received the RSA grant and the support from the Scottish Government, who recognise the valuable contribution Grangemouth makes to the Scottish economy.
"The 'KG Flex' project will see important modifications to our existing plant, allowing us to fully utilise a wider range of the gases extracted from the North Sea, which, in turn, will add considerable value to the Scottish economy."
First Minister Alex Salmond visited the Grangemouth site yesterday (Wednesday) to meet with Ineos management.
He said: "The sheer scale of the economic contribution made by Ineos Grangemouth – Scotland's sole refinery – is vast. Their entire industrial complex employs more than 1300 people and produces almost all of Scotland's vehicle fuel – it literally keeps Scotland moving.
"Our support of the chemicals industry has enabled Ineos to develop and move forward while helping to retain high value, highly skilled jobs.
"It is imperative that when and where we can, we continue to support companies like Ineos, the chemicals sector and its workers, who are an example of manufacturing and engineering excellence, during these tough times."
A number of local representatives welcomed the investment.
Falkirk East MSP Cathy Peattie said: "Grangemouth is hugely important to the Scottish economy and I have been calling for this to be properly recognised within the Government's strategy.
"We need assurances about jobs and consultation with the workforce, and I hope the First Minister will take this on board in his discussions with the company.
"I will also be looking for assurances from the First Minister that the Scottish Government will build on this investment through a continuing commitment to the sustainable development of the industry and infrastructure of the Grangemouth area."
Councillor Angus MacDonald said: "This further secures Grangemouth as Scotland's major industrial hub.
"It bodes well for the future of the industrial sector of the town. It is extremely refreshing to see the Scottish Government put it's money where it's mouth is, investing in our local economy to ensure we are in a strong position to recover from the recession."
Falkirk East MP Michael Connarty commented: "The need for substantial investment in the chemical processes at INEOS were part of the discussions with Secretary of State for Scotland Jim Murphy and have been part of my ongoing dialogue with the company as the gases coming to Grangemouth from the North Sea have changed.
"This shows how important our campaign to retain RSA for the Grangemouth area was when RSA areas were reviewed by the UK Government in 2006. I look forward to further commitments to investment on the Ineos site in the future."
