Grangemouth petrochem to reopen
25 Oct 2013
Chemicals firm Ineos today confirmed it was reopening the Grangemouth petrochemicals complex and preparing to invest £300 million in the Scotland plant after the Unite Union accepted pay and pension reform plans.
Unite has also agreed to a three-year ban on strikes at the plant.
Earlier this week Ineos announced it was putting the complex, which is the world’s largest producer of synthetic ethanol products, into liquidation due to losses of £10 million.
The firm said it was only prepared to begin a £300 million modernisation programme to improve the plant’s efficiency if the workforce accepted a pay freeze and pension reform, and if the union agreed to a halt in industrial action.
When it failed to secure these demands, it announced it was closing the plant.
This is a victory for common sense
Ineos chairman Jim Ratcliffe
However, facing 800 employees out of work, the Union has climbed down and accepted Ineos’ demands.
Unite has agreed, among other things, to: no strikes for three years; a three-year pay freeze; the scrapping of the final salary pension scheme; and the removal of full time union convenors on site.
In response Ineos has said it will reopen the petrochemical plant and the Grangemouth refinery, both closed last week after the threat of a 48 hour strike, immediately.
Ineos’ plans to invest a further £300 million in the site include building a gas terminal to bring in shale gas ethane from the US.
The Scottish government has indicated it will support the company’s application for a £9 million grant to help finance the terminal and the UK Government has given its prequalification approval for a £125 million loan guarantee facility.
“This is a victory for common sense,” said Ineos chairman Jim Ratcliffe.
“Unite advised employees to reject change and vote for closure. Thank goodness people finally came to their senses. Grangemouth now has a great future.”
