Grangemouth Petrochemical Site Will Reopen

Ineos says it will reopen its idled petrochemical and refining complex in Grangemouth, Scotland. The chemical maker had threatened to permanently shutter the plant if it couldn’t come to terms with Unite, the labor union representing workers at the facility. Ineos won a host of concessions from the union, including a three-year pay freeze, changes to the pension program, and an agreement to refrain from striking for three years. Ineos says it will invest $500 million in facilities at the complex to enable it to import cheap ethane feedstock from the U.S. The firm has also secured $200 million in loan guarantees and is seeking $15 million in grants from the U.K. government. “This is a victory for common sense,” says Ineos Chairman Jim Ratcliffe. The union concessions, government support, and investments are part of a survival plan the company has been pushing to save Grangemouth, which it says has been losing $16 million per month, largely because of high feedstock costs.