Grangemouth plant saved from closure

The owner’s reversal of its decision to axe the plant followed acceptance by the Unite union of a survival plan for the business, including a three-year pay freeze, ending of the final salary pension scheme and other changes to terms and conditions.

Owners Ineos said 48 hours previously that it would close the site, which employs 800 people, because workers refused to sign up to the changes.

Staff gave large cheers when they were told news of the turnaround at a mass meeting with managers yesterday. The news was also welcomed by the union Unite and politicians in London and Edinburgh who spoke to all sides to try to resolve the situation.

Ineos said it will immediately reopen the site and the adjoining oil refinery, which it had kept shut for the past week, and that it would now invest £300m in the site’s long-term future.

According to Grangemouth chairman Calum MacLean, the union ‘U-turn’ means the complex now has “an excellent future”. He told a press conference: “We are very happy to announce that following a meeting with shareholders yesterday, Grangemouth petrochemicals will remain open.”

The £300m will be used to fund losses and the building of a gas terminal to bring in shale gas ethane from the US, Ineos said.