The Courier & Advertiser (Fife Edition)
Grangemouth output to rise on £60m investment
Petrochemicals giant Ineos to add a new furnace to bolster production at Scotland’s single largest industrial site
Petrochemicals giant Ineos plans to invest £60 million in building a new furnace at its Grangemouth site.
Ineos said the major investment affirmed its commitment to its manufacturing operations at the site.
The 10th furnace will improve the efficiency of the plant and increase its production capacity to help meet growing demand.
It has awarded the contract to build the additional furnace on its Kinneil gas (KG) ethylene plant to German firm Selas-Linde GmbH.
Ineos chief executive John McNally said the development would open up opportunities for the manufacturing industry in Scotland.
He said: “Our plans to invest in the UK with the further expansion of our plant at Grangemouth has been made possible because we now have access to the raw materials that we need.
“The successful completion in 2016 of our project to bring to Grangemouth plentiful supplies of competitive US shale gas ethane over a long-term agreement has breathed new life into the plant.
“Production from Grangemouth provides vital raw materials used extensively throughout UK industry.
“Having additional furnace capacity will provide a range of future opportunities not just for Ineos and for the site but also for the heartlands of manufacturing in Scotland and the north east and north west of England.”
Subject to planning approval, preparatory project work will begin later this year, with the main construction work starting in 2019 and commissioning towards the end of 2020.
“It is entirely fitting that we make this announcement in the year we celebrate 25 years of continuous manufacture of ethylene on the KG plant,” Mr McNally added.
“Investment into our chemicals’ business in Scotland alone has already surpassed £500m in the last five years.”