A multimillion-pound grant from the Scottish Government will help safeguard more than 500 jobs at a giant oil refinery, First Minister Alex Salmond said yesterday.
Ineos, owner of the Grangemouth refinery and petrochemical complex, has been awarded £7.6million of Scottish Government funds in the form of a regional selective assistance (RSA) grant.
Further investment will take that up to £65million – with this coming on top of £45million already invested in the plant.
Mr Salmond said the cash would help retain 551 jobs at the site.
Speaking during a visit to the Grangemouth plant he said: “The sheer scale of the economic contribution made by Scotland’s sole refinery, Ineos Grangemouth, is vast.
“Their entire industrial complex employs more than 1,300 people and produces almost all of Scotland’s vehicle fuel.
“It literally keeps Scotland moving.”
The chemicals sector is worth £9.3billion a year in revenue for Scotland and is the country’s second-highest export earner after whisky, generating around £1.9billion of manufacturing exports.
Mr Salmond said: “Set against a recession and unprecedented economic challenges, the benefit of Ineos’ total £110million investment over the period of the project is clear.
“Our support of the chemicals industry with £7.6million RSA funding has enabled Ineos to develop and move forward while helping to retain these 551 high-value, highly skilled jobs.”
Works general manager Gordon Grant said the investment would support a project which would see ” important modifications” made to the Grangemouth site.
Mr Grant added the KG Flex project would allow Ineos at Grangemouth to “fully utilise a wider range of gases extracted from the North Sea, which in turn will add considerable value to the Scottish economy”.
Mr Salmond said: “It is imperative that, when and where we can, we continue to support companies like Ineos, the chemicals sector and its workers, who are an example of manufacturing and engineering excellence, during these tough times.”