Ineos tycoon Jim Ratcliffe seeks UK subsidy for new 4x4

Chemicals giant Ineos has had interest from European countries to build its new 4x4 vehicle.

Ineos chairman Jim Ratcliffe wants to create a rugged and 'cool' vehicle. Picture: Ineos/PA Wire

The business plans to build 25,000 vehicles a year from 2020 based on the famous Land Rover Defender which went out of production in 2016.

But despite the overseas interest, Jim Ratcliffe, the billionaire chairman of Ineos, said its preferred location for the project was likely to be on the UK’s eastern seaboard between Scotland and Hull.

• READ MORE: Companies news

The company already runs the Grangemouth plant north of the Border. Ratcliffe said of the planned £600 million project: “In an ideal world we would like to build it in the UK, which is where its heritage is based.

“But we have had a significant amount of interest from the Continent, where we could use existing facilities.” Ineos said the project would employ 1,000 workers directly, with up to 10,000 additional jobs created indirectly.

• READ MORE: Ineos motors on with plan to build heir to Defender 4x4

Three versions of the car would be built – petrol, diesel and hybrid – but there are no current plans to build an electric version because of the weight of the battery needed to power it.

Ratcliffe said companies in a number of countries, including Germany, had the space and skilled workforce available to build the as-yet-unnamed 4x4, adding it would be a “challenge” to base production in the UK without a government subsidy.

• READ MORE: Scotland to phase out petrol and diesel vehicles by 2032

About 200 engineers will be working on the project by the end of the year and Ratcliffe said the aim was to make a world-class 4x4 that was rugged, reliable and “cool”.

• Global vehicle sales are predicted to reach 100 million in 2019 despite a cooling in the UK and US markets, writes Scott Reid.

The forecast has been made by Euler Hermes, the trade credit insurer, which examined global data and trends across the automotive sector, focusing on “the race for sales, electric cars, profitability and innovation”.

China followed by India are forecast to boost worldwide sales growth in 2017 and 2018, more than offsetting US and UK sales declines. China, France, Germany, the UK and the US are said to be leading the way on electric vehicle sales with strong growth set to see global stock exceed three million cars in 2017.

• READ MORE: Slump in diesel demand drives decline in new car sales

Ludovic Subran, chief economist at Euler Hermes, said: “New vehicle registrations are expected to grow globally 2.1 per cent this year, as Europe is on the mend and manufacturers worldwide are making cars ‘cool’ again.”

Global vehicle sales are likely to reach 95.8 million in 2017.

Click here to ‘Like’ The Scotsman Business on Facebook