Government Acts to Save the Last U.K. Ethylene Plant

INEOS Chief Executive Officer Sir Jim Ratcliffe added: "The support of the U.K.

However, we need to continue to work together to deliver competitive and efficient low-carbon ...

government has stepped in to save its last ethylene plant at Grangemouth in Scotland with £120 (US$160 million) million funding.

Released Tuesday, December 23, 2025 Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) The U.K.'s last ethylene plant has been saved from closure by an injection of £120 million (US$160 million) from the government.

Owner INEOS Group (London), who has been highly critical of the U.K.

and the European Union (EU) over its lack of support for the chemicals industry, will also invest £30 million (US$40 million).

government has stepped in to save its last ethylene plant at Grangemouth in Scotland with £120 (US$160 million) million funding.

The plant, which employs 500 people, will also benefit from £30 million (US$40 million) from owner INEOS Group (London), which has been vocal in recent years about the government's and the EU's lack of support for the struggling chemicals sector.

Ethylene produced at Grangemouth is essential for medical-grade plastics production, water treatment and in aerospace and car-building, the government stated.

The money will go to improving energy efficiencies, reducing carbon emissions and increasing productivity.

INEOS said it has spent more than £100 million (US$133 million) over the last year maintaining operations at the site.

About 40% of Europe's ethylene production capacity has either shut down or was at risk, according to the Department for Business and Trade.

The decision comes just months after Exxon Mobil Corporation (Spring, Texas) announced the closure of its Fife Ethylene Plant (FEP) at Mossmorran in Scotland with the loss of up to 400 jobs, after failing to agree on a path forward with the U.K.

The company, which had threatened to exit Europe over excessive EU policies, cited an unfavorable economic and policy environment under the current U.K.

government, alongside high supply costs, poor market conditions and plant efficiency.

For additional information, see November 21, 2025, article-- ExxonMobil Shutting Scottish Ethylene Operations .