INEOS is to invest £60 million in the UK to expand production at its Grangemouth site
- INEOS O&P UK has issued the contract to build an extension to the current nine furnaces with the addition of a tenth furnace.
- The project is made possible because of US ethane, which has been fundamental in turning around the fortunes of the site.
INEOS has today announced plans to invest £60 million to expand its Grangemouth site. It has awarded a contract to build an additional furnace on its KG ethylene plant to Selas-Linde GmbH, Germany.
This significant investment affirms the Company’s commitment to UK manufacturing at a time when it is in decline across many industrial regions across the country. The addition of a tenth furnace, will improve efficiency of the plant and increase its production capacity, to ensure the business can continue meet growing demand for its products.
John McNally, CEO of INEOS O&P UK says: “Our plans to invest in the UK with the further expansion of our plant at Grangemouth, has been made possible because we now have access to the raw materials that we need. The successful completion in 2016 of our project to bring to Grangemouth plentiful supplies of competitive US shale gas ethane over a long-term agreement, has breathed new life into the plant.”
“Production from Grangemouth provides vital raw materials used extensively throughout UK industry. Having additional furnace capacity, will provide a range of future opportunities not just for INEOS and for the site but also for the heartlands of manufacturing in Scotland and the North East and North West of England.”
“It is entirely fitting that we make this announcement in the year we celebrate 25 years of continuous manufacture of ethylene on the KG plant. Investment into our Chemicals’ business in Scotland alone has already surpassed £500m in the last 5 years. This latest announcement demonstrates INEOS’ on-going commitment to its manufacturing operations at Grangemouth and investment into the UK.”
Subject to planning approval, preparatory project work will begin later in 2018, with the main construction work starting in 2019 and commissioning towards the end of 2020.
For further information:
David East, Communications Manager, INEOS O&P UK, Grangemouth, tel. 01324 476948
Richard Longden, Communications Manager, INEOS, tel. +41799626123
Mark Killick (MediaZoo) +44 (0) 207 384 6980 or +44 (0) 7836 634449
Andrew McLachlan (MediaZoo) +44 (0) 207 384 6980 or +44 (0) 7931 377162