UK-based chemicals and oil products manufacturer Ineos is set to reopen its Grangemouth petrochemical plant near Falkirk in Scotland, which was shut last week following an industrial dispute between management and union workers.
In order to get the plant reopen, the Unite unions has agreed not to carry out any strikes for three years, to move to a modern pension scheme, to freeze pay for three years and to amend on-site union agreements including the removal of full time union convenors.
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UK Secretary of State for Energy and Climate Change Ed Davey said that saving 800 jobs is important to the Scottish economy, the UK economy and the local economy also.
"Many people in the UK and Scottish Governments have worked hard to make this happen, a clear sign of our commitment to Scotland, its economy and its people," Davey added.
Unite’s withdrawal of its opposition to the Grangemouth survival plan has allowed shareholders to invest a further £300m in the company.
Ineos will use the money to fund ongoing losses and to finance the building of a gas terminal to bring in shale gas ethane from the US.
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By GlobalDataThe company will also receive support from the Scottish government for its £9m grant application to help finance the terminal.
The UK Government has given its prequalification approval for a £125m loan guarantee facility.
Confederation of British Industry (CBI) director-general John Cridland said: "We welcome the decision to restart operations at Grangemouth with immediate effect. The site is a major employer in the area with a vital role in the wider economy of Scotland and the UK."
Image: Ineos will reopen its Grangemouth petrochemical plant with immediate effect. Photo: courtesy of INEOS Capital Limited.
