Ineos announced it is investing £150 million at its Grangemouth site — supported by a £75 million UK government loan guarantee and £50 million grant.
Ineos said the investment will “underpin the long-term future of its Grangemouth site in Scotland, one of the UK’s most important industrial assets and a critical hub for the nation’s manufacturing and energy sectors. ”
Facilitated by NatWest Group — the bank formerly known as RBS — the investment will upgrade key production units, improve energy efficiency, reduce emissions, and enhance the site’s competitiveness.
Ineos said: “At a time when British manufacturing is in decline, this investment, in partnership with the UK Government, maintains the operation of Grangemouth as a critical and strategic supplier to UK industry.
“Government support shows the strategic importance of making things in Britain. It protects more than 500 high-value jobs, secures hundreds more in the supply chains and preserves the industrial capability the nation needs …
“Grangemouth has long been at the heart of Scottish and UK industry,” said Ineos.
“These investments maintain the site and more than 500 highly skilled direct jobs, as it continues to supply essential raw materials that are vital to the UK economy.
“From food packaging and housing insulation to automotive parts, hospital equipment, medicines and sustainable technologies, Grangemouth plays a fundamental role in making modern life possible.”
Ineos chair Jim Ratcliffe said: “The £150m investment in the future of a major UK industrial site demonstrates INEOS’ commitment to British manufacturing.
“The support of the UK Government is welcome. However, we need to continue to work together to deliver competitive and efficient low-carbon manufacturing for the UK, long term.
“The answer is NOT decarbonisation by deindustrialisation. Without a strong manufacturing base, the economy will continue to decline.
“High energy costs and punitive carbon charges are driving industry out of the UK at an alarming rate. If politicians want jobs, investment and energy security, then they must create a competitive environment.”
UK 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. Our commitment is clear: to back British industry, to stand by hardworking families, and to ensure places like Grangemouth can thrive for years to come. Promise made, promise delivered.”
UK government Business Secretary Peter Kyle said: “The UK Government’s decision to step in will protect Grangemouth as a site of strategic national importance and secure 500 vital jobs in the area. By partnering with INEOS we are backing the plant and its long-term future, giving certainty to workers and the supply chain for the next five years. This approach is part of our Modern Industrial Strategy through which we are working to reduce the cost of energy for industry and support manufacturing in the UK.”
The UK government’s “Scottish Secretary” Douglas Alexander said: “The UK Government is investing £120m to protect jobs and secure future opportunities at Grangemouth.
“Grangemouth has been at the heart of Scotland’s industrial story for generations, and we are ensuring it remains central to our future. This is a landmark moment for Grangemouth.
“This £120 million UK Government investment protects not just the 500 jobs at the plant, but hundreds more across Scottish supply chains. We have been clear that we will do everything possible to secure the long-term future of the Grangemouth site.”
Robert Begbie, CEO Commercial & Institutional, NatWest, said: “As the UK’s biggest bank for business, accelerating regional growth is a key priority for us at NatWest. We know that this vital funding will support INEOS Grangemouth in remaining a critical site for our national resilience and prosperity, whilst helping protect jobs in Scotland and beyond.”