INEOS said it will move forward with a £150 million investment at its Grangemouth petrochemical complex in Scotland, supported by UK government financing that includes a £75 million loan guarantee and a £50 million grant.
The government-backed package is intended to secure the site’s continued operation amid higher energy costs and competitive pressures facing UK manufacturing, according to statements from the company and government sources.
The UK government said the loan guarantee reflects the strategic importance of Grangemouth to domestic manufacturing capacity and supply chain stability.
Prime Minister Keir Starmer said the investment underscores the government’s commitment to protecting jobs and industrial communities, while Business Secretary Peter Kyle said the funding would provide certainty for workers and suppliers over the next five years.
INEOS said the investment will focus on upgrading key production units, improving energy efficiency and reducing emissions at the site, which is one of the UK’s largest petrochemical hubs. The company added that the government-supported financing will help maintain operations while advancing modernization efforts across its European asset base.
The Grangemouth facility supports more than 500 direct jobs and hundreds more across the supply chain, supplying raw materials used in packaging, construction, automotive manufacturing, healthcare and energy.
As a producer of olefins and polymers used in fuels, lubricants and additives, continued investment in the site supports the availability of domestically produced feedstocks for lubricant base oils and additive manufacturing, helping limit reliance on imports.