A £230million loan will secure thousands of jobs at a chemical production and oil refining plant.
The UK government will guarantee the bumper sum, which will be used to upgrade Ineos AG’s petrochemical plant at Grangemouth in Scotland.
The company is forging the way in importing cheaper ethane from the US. The move comes after North Sea production slows and higher energy and feedstock costs curb chemical producers in western Europe.
After receiving the cash injection, the firm will immediately begin work to build Europe’s biggest ethane storage tank.
“The Grangemouth guarantee is fantastic news for Scotland’s economic future, and for the UK’s energy security,” Chief Secretary to the Treasury Danny Alexander said.
“Our action is creating the right conditions for more investment in our infrastructure, helping to build a stronger economy and a fairer society across the country.”
The £230million loan will secure thousands of jobs and secure the plant’s long-term future, according to the Treasury.