Global chemical giant INEOS has announced a significant capital injection of €250 million designed to regenerate and modernize its Lavera steam cracker facility in southern France.
INEOS has committed €250 million to modernize its Lavera industrial site in France, safeguarding thousands of jobs and improving environmental efficiency with state backing.
This major investment program, which serves as the first phase of a long-term regeneration plan, aims to secure the future of one of France’s most critical industrial assets. The project focuses on enhancing the site's reliability, boosting operational efficiency, and significantly reducing emissions. The initiative is being undertaken with the support of the French government and has been facilitated financially by BNP Paribas and ING.
The Lavera complex is a cornerstone of the regional and national economy, directly employing approximately 2,000 people. Furthermore, the site sustains an estimated 10,000 additional jobs through its extensive supply chain. The facility is responsible for crude oil and manufactures chemical products required by a vast array of sectors, including healthcare, pharmaceuticals, aerospace, automotive transport, food packaging, and renewable energy technologies.
While the investment marks a vote of confidence in the French site, INEOS Founder and Chairman Sir Jim Ratcliffe used the announcement to issue a severe warning regarding the current state of European industry. Ratcliffe praised the French government for its "industrial leadership" but cautioned that the broader European manufacturing base is at risk of collapse due to uncompetitive conditions.
"The government understands that without a strong manufacturing base, Europe will falter," Ratcliffe stated. He highlighted that while INEOS believes in the Lavera site and its workforce, the continent faces an existential threat from "high energy prices, over-regulation, and punitive carbon costs."
The company pointed out that European manufacturers are currently grappling with energy prices that are three to four times higher than those in China and the United States. Additionally, European firms face carbon costs that are not levied on their global competitors, creating an uneven playing field that has already led to multiple plant closures across the continent.
Sébastien Martin, France's Minister Delegate for Industry, welcomed the investment as a reaffirmation of INEOS's confidence in the French industrial sector. "Thanks to the support of the State, Lavera becomes the symbol of a nation that chooses to produce, innovate, and invest on its own soil," Martin said.
However, INEOS has made it clear that this €250 million investment is only the beginning. Future phases of the Lavera regeneration program, which promise further efficiency gains and major CO2 reductions, will be contingent upon continued support from the French State. The company maintains that for the industry to decarbonize and thrive, Europe must restore its competitiveness against global rivals.
