Britain's largest chemical plant will remain open after its owner Ineos secured a major Government support package in a deal that will secure around 500 jobs.
The deal will see the UK government provide more than £120 million to help keep Ineos' Olefins and Polymers (O&P) plant in Grangemouth operational, after the site's future became uncertain earlier this year.
Prime Minister Sir Keir Starmer said the move was an investment in “good jobs, stronger communities and a modern economy”.
Meanwhile, Ineos boss and founder Sir Jim Ratcliffe said the funding was “welcome” and would help support manufacturing in the UK.
The billionaire has previously criticized the Labor government's energy policies and investment environment in the UK.
The Government and Ineos will together invest around £150m in the petrochemicals site, which the UK has deemed “strategically important” to its national infrastructure.
Ineos has accepted assurances that the funds will only be used to improve the site and has allowed the Government to share in future profits.
The chemical giant said it has spent more than £100 million maintaining operations at the site over the past year.
However, it comes after Ineos closed its ethanol manufacturing plant and oil refinery in Grangemouth earlier this year, which it had linked to high costs.
The Prime Minister added: “When we said we would protect jobs and invest in Britain's future, we meant it, and this is proof.
“Through partnership, determination and our modern industrial strategy, we are delivering new opportunities, new investment and security for the next generation of workers in Scotland.”
Business Secretary Peter Kyle said: “The UK Government’s decision to intervene will protect Grangemouth as a site of strategic national importance and secure 500 vital jobs in the area.
“By partnering with Ineos, we are supporting the plant and its long-term future, providing security for workers and the supply chain into the future.”
Sir Jim added: “Through the partnership, Ineos and the UK Government have demonstrated their commitment to operating the site and maintaining jobs.
“The deal includes safeguards to protect taxpayers' money, such as strict guarantees that funds can only be used to improve the site, and also gives the UK government the right to share in future profits.”
Scottish Government Cabinet Secretary for Climate Action and Energy, Gillian Martin, said: “This is a very welcome announcement.
“The Scottish Government has been calling on the UK Government for months to intervene to protect jobs in Grangemouth and Mossmorran on a scale seen in other parts of the UK. This news will give a much-needed boost to the Grangemouth community and Ineos O&P workers.
“The Scottish Government last week announced an £8.5 million investment in the Grangemouth industrial cluster, including MiAlgae and Celtic Renewables, which will create up to 460 jobs, demonstrating that a long-term industrial future is possible at the site. We will continue to do everything we can, within our limited powers, to achieve this.”
