‘Finance must be repaid if Ineos reneges on deal’
THE Welsh Government said it would expect Ineos Automotive to repay the financial support it has received to date if it shelves plans for a 500-job new factory for its Grenadier 4x4 vehicle in Bridgend.
Ineos Automotive confirmed earlier this week that it had suspended work on the planned assembly plant in Bridgend and at a chassis facility for the Grenadier in Portugal.
It has now entered into discussions with a view to acquiring an existing factory in France from Mercedes-Benz.
A decision on whether it plans to centralise all production in France is expected in a matter of weeks.
While the Welsh Government has called on Ineos to make good on its original investment decision, announced last year, the chances of that happening now look extremely slim.
Moving to a single and existing plant in France would save the project tens of millions of pounds.
The Welsh Government said it couldn’t comment on how much it has invested to date in supporting the Bridgend project, as well as the overall package which would have been drawn down as jobs were created.
However, it is understood that with enabling work preparing the site, as well as road infrastructure, the Welsh Government has spent around £5m supporting the project to date.
The 250,000 sq ft factory was planned to be located next to the soon-to-close Ford Engine plant in Bridgend at the 100-acre Brocastle Business Park site owned by the Welsh Government.
However, if Ineos confirms it is abandoning the project, the Brocastle site, as was always the case, aims to attract other investment projects.
On seeking recompense if Ineos Automotive shelves the Bridgend factory project, a Welsh Government spokesman said: “We have invested significant time and money in this project and, should the situation arise, and Ineos decide not to invest further in Wales we will of course look to recoup appropriate costs from the company.”
Following confirmation of the review of the Grenadier project from Ineos, Economy Minister Ken Skates said on Tuesday: “I am incredibly disappointed that Ineos has indicated they are reconsidering their move to Wales.
“I have told the CEO that abandoning Bridgend at this late stage, after so much effort and money has been invested in preparing the site, would be a terrible decision for Wales and the UK.
“We have worked closely with the company in good faith to secure the site in Bridgend and it would be a real blow if Ineos reneged on its very public commitment that it would be locating here.
“We have impressed on the company in no uncertain terms the importance of honouring its commitment to Wales and to deliver on its promise to build a British icon here in Britain.”
Ineos was asked if it would repay the Welsh Government in the event of its opting to invest in France.
In a statement on Tuesday it said: “Ineos Automotive can confirm that it is reviewing its manufacturing strategy for the new Grenadier in light of the Covid-19 pandemic – which has led to some delays in our development plans, but has also presented some new opportunities in terms of existing manufacturing capacity that were not previously available to us.
“Specifically, Ineos Automotive has entered detailed discussions with Mercedes-Benz on the acquisition of its Hambach site in Moselle, France. We have therefore suspended the post-lockdown resumption of work at our sites in Wales and Portugal. Further updates will follow.”