INEOS invests £150 million at Grangemouth, backed by UK Government, to modernise operations, protect jobs, and strengthen British manufacturing.
INEOS has announced a significant new capital commitment of £150 million aimed at securing the long-term future of its Grangemouth manufacturing complex in Scotland. The Grangemouth site is widely recognised as one of the United Kingdom’s most strategically important industrial locations, serving as a cornerstone for both the national manufacturing base and the wider energy and chemicals supply chain. This major investment underlines the company’s intention to sustain and modernise British industrial capability at a time when domestic production capacity has been under sustained pressure.
The investment is being delivered with the backing of the UK Government and has been facilitated through financial support and engagement from NatWest Group. Together, these partnerships will enable a programme of upgrades across key production units at Grangemouth. The improvements are designed to enhance energy efficiency, reduce operational emissions, and strengthen the overall competitiveness of the site in global markets. By focusing on modernisation rather than contraction, the initiative aims to ensure that Grangemouth remains resilient in an increasingly challenging industrial environment.
For decades, Grangemouth has played a central role in Scotland’s industrial story and in the wider UK economy. The site directly supports more than 500 highly skilled jobs, while also sustaining a much larger network of contractors, suppliers, and downstream manufacturers. Its output provides essential raw materials that are critical to everyday life, including components used in food packaging, home insulation, automotive manufacturing, healthcare equipment, pharmaceuticals, and a growing range of sustainable technologies. Maintaining domestic production of these materials helps protect supply security and reduces reliance on imports.
Prime Minister Keir Starmer described the investment as evidence of the government’s commitment to protecting jobs and rebuilding Britain’s industrial strength. He emphasised that collaboration between government and industry, supported by a modern industrial strategy, can deliver long-term security for workers, strengthen local communities, and create a more resilient economy. According to the Prime Minister, the future of places like Grangemouth is fundamental to ensuring that economic growth benefits working families across the country.
Business Secretary Peter Kyle highlighted the strategic importance of the Grangemouth site, noting that government intervention would safeguard 500 vital jobs and provide stability for the workforce and supply chain over the next five years. He explained that the partnership with INEOS reflects a broader policy objective to lower energy costs for industry, support manufacturing investment, and prevent further erosion of the UK’s industrial base.
Over the past 25 years, the UK has seen the loss of nearly two-thirds of its manufacturing capacity, even as the population has increased by more than 10 million. Demand for essential materials has not diminished, and without domestic production these inputs must be imported, often at higher cost and with little environmental or economic benefit to the country. The Grangemouth investment addresses this challenge directly by reinforcing local manufacturing capability.
This programme forms part of a wider strategy by INEOS to invest in modern, efficient, and lower-emission industrial facilities across its global portfolio. At Grangemouth, its Olefins & Polymers business operates world-scale petrochemical plants producing ethylene, propylene, and polyethylene—core building blocks used across countless industries. The latest investment reaffirms INEOS’ long-term commitment to operating world-class assets in the UK while supporting the future of British industry.
