Ineos asks for Government help to secure Grangemouth site’s future

Ineos bosses have warned that the Grangemouth petrochemical plant will close by 2017 unless new investment takes place
Ineos bosses have warned that the Grangemouth petrochemical plant will close by 2017 unless new investment takes place
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The company that runs the Grangemouth petrochemical plant has asked the Scottish and UK Governments for grants and loan guarantees of £150m to build a new gas terminal.

Ineos called the move a “survival plan” for the complex after revealing earlier this month that it was losing £10 million a month.

In an interview with The Falkirk Herald, bosses claims that the petrochemical plant, which is separate from the oil refinery, would close by 2017 unless new investment was found.

Callum MacLean, Ineos Grangemouth chairman, said: “The current business is unsustainable. We have worked incredibly hard to put together a survival plan that asks something of everyone. If everyone agrees to it, Grangemouth has a future. If not, Grangemouth Petrochemicals will close.”

Ineos claims to have invested £1 billion in Grangemouth but the company has indicated it is willing to invest £300 million more to facilitate the development of a new gas terminal which would be used to import ethane from the United States.

It has asked the Scottish and UK governments for grants and loan guarantees totalling £150 million to support this venture.

The plan was revealed on Monday, 72 hours after Unite union members at Grangemouth voted in favour of strike action.

Speaking last week, Pat Rafferty, Unite regional secretary, said: “They (Ineos) are trying to influence people into voting negatively. The business is not doing as well as it could and that’s why we instigated talks with Ineos last year... that they walked away from.”