Prime Minister Keir Starmer hailed the investment at Grangemouth after a difficult year for workers at Scotland’s largest industrial site.
Five hundred jobs have been protected at Scotland’s largest industrial site after a £120m support package from the UK Government. The investment at Grangemouth will see the UK’s last ethylene plant stay open amid concerns about job losses across the energy and chemicals sector.
It comes after Scotland’s last remaining oil refinery closed earlier this year, leading to hundreds of job losses at Grangemouth. But Labour ministers have now intervened to protect chemical production on the Forth and jobs at the plant.
The £120m deal is part of a £150m joint investment with owners INEOS. Ethylene is essential for plastics and use in the chemical supply chain, including water treatment.
The UK Government said these plastics are vital for industries like advanced manufacturing, automotive and aerospace. The plant is also linked to the Forties Pipeline System which transports North Sea oil and gas.
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.”
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Scottish Secretary Douglas Alexander said: “The UK Government is investing £120 million today to protect jobs and secure future opportunities at Grangemouth.
“Grangemouth has been at the heart of Scotland’s industrial story for generations, and today we’re 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 thousands more across Scottish supply chains.”
INEOS CEO Sir Jim Ratcliffe said: “This £150m investment in the future of a major UK industrial site demonstrates INEOS and the UK Government’s commitment to British manufacturing. The support of the UK Government is welcome as we work to deliver competitive and efficient low-carbon manufacturing for the UK, long term.
“UK Government support for INEOS’ investment shows the strategic importance of making things in Britain. It protects 500 high-value jobs, secures supply chains and preserves the industrial capability the nation needs.”
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