Ineos writes off value of £400m Grangemouth plant

The owner of one of Scotland’s largest industrial plants has written down the value of the facility to zero.

Grangemouth chiefs have pleaded with workers not to go ahead with a planned strike. Picture: Andrew Milligan/PA Wire

Grangemouth Petrochemicals owner Ineos said all the petrochemical assets at the site, including property, plant and equipment, were previously valued at £400 million but continued losses meant they now have “nil value”.

Ineos said it has invested more than £1 billion since taking over at Grangemouth in 2006, but the site has lost more than £150 million over the last four years “and money continues to flow out of the business every month”.

The plant’s chairman, Calum MacLean, said: “We had no option but to write down these assets. After four years of heavy losses, the petrochemicals business is effectively worthless.

“Without lower costs and an alternative source of additional raw material it will close 2017, at the latest.”

More than 1,000 people are employed at the site, and Ineos has demanded that unions agree to job cuts and a new pensions package in exchange for a £300m investment package to keep it open.