Grangemouth Industrial Hub Receives Major Government Backing to Secure Future

Government Intervention Saves Crucial Industrial Site

Grangemouth, Scotland’s vital industrial cluster, has secured its future following a series of significant government investments totalling over £300 million. The UK government announced it will invest £120 million in Ineos’ chemical factory in Grangemouth, whilst £8.5 million of Scottish Government funding will accelerate low-carbon innovation at the site. These interventions come after months of uncertainty following the closure of Scotland’s only oil refinery earlier this year.

Strategic Importance for UK Economy

The investment package addresses critical concerns about the future of one of Britain’s most important industrial sites. The deal, which includes a £120 million government support package, safeguards 500 jobs at the site and hundreds more across the wider supply chain. The Grangemouth plant is vital for the whole UK economy. It produces ethylene which is essential for medical-grade plastics and use in the chemical supply chain.

Scotland’s only refinery Grangemouth ceased operations after more than a century of crude processing in April 2025, triggering widespread concern about jobs and energy security. The petrochemicals facility, however, remains operational with this new government support ensuring its long-term viability.

Green Transition and Future Investment

Beyond preserving existing operations, Grangemouth is positioning itself as a hub for green manufacturing. Celtic Renewables will put the funding towards the planning and construction of a new £120 million industrial-scale biorefinery at Grangemouth. The new facility is expected to create 149 new jobs in Grangemouth by 2030, including highly skilled roles in science and technology.

Up to 460 new jobs are set to be created at the Grangemouth industrial cluster following £8.5 million of Scottish Government funding to accelerate low-carbon innovation. This investment demonstrates governmental commitment to supporting a ‘just transition’ that balances environmental goals with protecting workers and communities dependent on traditional industries.

Significance for Workers and Communities

The announcements represent a turning point for Grangemouth after months of campaigning by trade unions and local communities. Prime Minister Keir Starmer said: ‘This is about good jobs, stronger communities, and a modern economy that works for everyone’. The combined investment packages signal government recognition of Grangemouth’s strategic importance whilst paving the way for its transformation into a centre for sustainable manufacturing, offering hope to thousands of workers and their families whose livelihoods depend on the site’s continued operation.