Huge losses in both refining and petrochemicals mean change is essential
Grangemouth petrochemicals will close no later than 2017 unless survival plan is adopted
INEOS is willing to invest a further £350 million at the site over the next three years
INEOS has submitted applications to the Scottish and UK governments for grants and loan guarantees totalling £150 million
INEOS employees asked to contribute to the future of the site
Calum Maclean, chairman of both Grangemouth Petrochemicals and Grangemouth Refining says: Everyone will have to give something if this business is to survive. We don’t have a plan b.
Today INEOS is launching a Survival Plan for Grangemouth to ensure the long-term survival of the site.
Grangemouth is at a crossroads. The North Sea gases, which provide its raw materials, are running out and without massive new investment the petrochemicals site will close in 2017, latest.
Grangemouth Site is losing £10 million a month, the pension scheme is £200 million in deficit and pension costs are now an unsustainable 65% of salary.
Calum MacLean, Chairman of both Grangemouth Petrochemicals and Grangemouth Refining, says: The current business is unsustainable. We have worked incredibly hard to put together a Survival Plan that asks something of everyone. If everyone agrees to it, Grangemouth has a future. If not, Grangemouth Petrochemicals will close
INEOS has already invested £1 billion in Grangemouth but the company has indicated it is willing to invest a further £350 million to facilitate the development of a new gas terminal to bring in ethane from the USA. This scheme is identical to the one the company is currently executing in Rafnes, Norway.
The company has asked the Scottish and UK government for grants and loan guarantees totalling £150 million to support this venture.
The company is also asking employees to play their part and has communicated the changes required in the Survival Plan to employees and Unions.
The package of pension and remuneration changes includes a superior money purchase pension scheme for all employees. The existing Final Salary Scheme will close.
The company also intends to close a number of plants and reduce headcount.
Chairman, Calum MacLean, says: These changes will transform our Grangemouth business and ensure the long term future of the site. But everyone must understand that this is a package deal and there is no plan B.
ENDS
See Note to Editor’s attached.
NB: Spokespeople are available for interview.
Media contacts
Richard Longden (INEOS): 0041 21 627 7063 or 0041 7996 26123
Mark Killick (Media Zoo): 020 7384 6980 or 07836 634449
Anna Jakubisiak (Media Zoo) 020 7384 6980 or 07814 971960
Andrew MacLachlan (Media Zoo) 020 7384 6980 or 07931 377162