Ineos write down Grangemouth petrochemical assets to zero

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Oil giant Ineos has reduced the value of its Grangemouth petrochemical complex from £400 million to zero.

The vast site is worthless, according to the firm’s annual accounts lodged yesterday.

Ineos petrochemical and refinery complex in Grangemouth

Ineos petrochemical and refinery complex in Grangemouth

Bosses said they had “no option” but to write down the value of its property, plant and equipment after four years of heavy losses.

They claim that despite a £1 billion investment, the site has continued to make a loss.

There has already been a warning that the petrochemical complex will close by 2017 if there is not substantial investment.

Earlier this week, Ineos revealed it was looking for a £150 million bailout from the Westminster and Scottish governments to keep the site open.

It is now being suggested that the company would be happy to offload the business for as little as one pound.

Furious East Falkirk MP Michael Connarty said he would be happy to stump up the pound himself, but was more interested in getting together a consortium to take over the site.

He also accused the firm of trying to “bully” the government into handing over cash.

Mr Connarty added: “I have no doubt I could put together a Scottish business consortium to take the complex off their hands. But I’d give them the pound myself.”

Calum MacLean, chairman of the Grangemouth petrochemical business, said: “We had no option but to write down these assets. After four years of heavy losses, the petrochemical business is effectively worthless.

“Without lower costs and an alternative source of additional raw material it will close 2017 at the latest.”

The move comes as members of Unite prepare to start a work-to-rule and overtime ban at Grangemouth on Monday.

Their industrial action is over the treatment of union official Stevie Deans, who was involved in the row over the selection of a Labour candidate in Falkirk. Ineos is investigating him over issues linked to the Falkirk row.