The deal, which includes a £120 million government support package, safeguards 500 jobs at the site and hundreds more across the wider supply chain.

This package will help secure the site’s operations and contribute toward improving energy efficiencies, reducing carbon emissions and increasing productivity, helping to secure the site’s long-term competitiveness and sustainability. INEOS has spent over £100m over the last year maintaining operations at the site.

The Grangemouth plant is vital for the whole UK economy. It produces ethylene which is essential for medical-grade plastics and use in the chemical supply chain. These plastics are also vital to key industries, including advanced manufacturing, automotive, and aerospace, where they are used in nearly every product.

The action from the UK government is part of its ‘Industrial Strategy’, which identifies chemicals as a vital foundational sector that underpins the UK’s high-growth industries like defence and advanced manufacturing by producing the materials they all depend on, while also being essential to many supply chains.

The UK government is backing the chemicals sector through the industrial strategy with targeted support to bring down energy costs, including through the British Industrial Competitiveness Scheme – which will slash costs for businesses in sectors including chemicals by up to 25% – and the British Industrial Supercharger, which will save UK’s most energy-intensive firms money on their electricity costs.

The plant also links to the Forties Pipeline System, which is key for transporting North Sea oil and gas to onshore facilities. Without government intervention, the plant’s closure would have seriously affected hundreds of onsite workers, impacted thousands of jobs regionally, and devastated supply chains.

Business Secretary Peter Kyle will formally announce the support today during a visit to the INEOS site in Grangemouth with the Chancellor and Scotland Secretary.

Prime Minister, Keir Starmer, said: “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.”

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 going forward.

“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.”

Chancellor Rachel Reeves said: “We said we would stand squarely behind communities like Grangemouth and we meant it.  

“Building on the millions of pounds we’ve already invested in Grangemouth, this vital package protects our national resilience and secures the livelihoods of hundreds of people employed at the site way into the future.”

Scottish Secretary Douglas Alexander said: “The UK government is investing £120m 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 £120m 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.”

Robert Begbie, CEO commercial & institutional, at NatWest, added: “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.”