Multi-million Grangemouth cash investment from INEOS

INEOS is to invest £60 million in the UK to expand production with a tenth furnace at its Grangemouth site.

The petrochemical giant has issued the contract to build an extension because of US ethane’s input on the site, with work to potentially begin before the turn of the year.

A large local employer in the town, it says the move ‘affirms the Company’s commitment to UK manufacturing at a time when it is in decline across many industrial regions across the country’.

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INEOS will pay £60m for the new furnace. Picture: John Devlin

John McNally, CEO of INEOS O&P UK said: “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.

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Grangemouth also hosts Europe's biggest ethane tank. Picture: Michael Gillen

“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 five years. This latest announcement demonstrates INEOS’ on-going commitment to its manufacturing operations at Grangemouth and investment into the UK.”

The KG ethylene plant work has been contracted to Selas-Linde GmbH, Germany.

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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.

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.