David Henderson<\/span>Scotland news correspondent<\/span><\/p>\n<\/div>\n <\/span><\/div>\n<\/div>\n The UK government is to invest \u00a3120m in a support package for the Grangemouth industrial complex.<\/p>\n Owners Ineos will contribute \u00a330m to the joint investment deal.<\/p>\n The site, the UK’s last ethylene plant, employs about 500 people in the production of plastics.<\/p>\n The government says this deal means the Grangemouth plant “has been saved”.<\/p>\n<\/div>\n Prime Minister Sir Keir Starmer said the move was proof his government would protect jobs and ensure places like Grangemouth can develop into the future.<\/p>\n He said: “We’re delivering new opportunities, fresh investment and security for the next generation of workers in Scotland.<\/p>\n “Our commitment is clear; to back British industry, to stand by hardworking families, and to ensure places like Grangemouth can thrive for years to come.”<\/p>\n<\/div>\n The complex uses shale gas brought in by ship from the United States to produce ethylene, a key ingredient in plastics used in advanced manufacturing and the automotive and aerospace industries.<\/p>\n It stands next to the Grangemouth oil refinery.<\/p>\n In April, it stopped processing crude oil<\/a> and moved to being an import terminal for finished fuels, with the loss of 400 jobs.<\/p>\n In January, the Ineos chairman Sir Jim Ratcliffe warned the chemical industry was coming to an end in Britain due to high energy costs and carbon taxes.<\/p>\n<\/div>\n He said the new investment package demonstrated Ineos and the UK government’s commitment to British manufacturing.<\/p>\n “It protects 500 high-value jobs, secures supply chains, and preserves the industrial capacity the nation needs,” he said.<\/p>\n “The support of the UK government is welcome as we work to deliver competitive and efficient low-carbon manufacturing for the UK, long term.”<\/p>\n In recent months there has been concern about the future of the UK petrochemical industry because of the rising cost of energy.<\/p>\n Last month, ExxonMobil announced plans to close part of the Mossmoran chemical plant in Fife<\/a> by February, with the loss of up to 400 jobs.<\/p>\n The company said the high cost of energy at the plant, which also produces ethylene for the plastics industry, was partly to blame for the decision.<\/p>\n The UK government has warned high energy costs have caused problems for the chemicals industry across Europe.<\/p>\n It said about 40% of ethylene gas capacity has either closed recently or is at risk of closure.<\/p>\n<\/div>\n The UK and Scottish governments have been scrambling to reduce the impact of recent job losses in the sector.<\/p>\n They made a joint commitment to supporting a green energy hub at Grangemouth, on part of the site left vacant by the refinery closure.<\/p>\n In her budget last month, chancellor Rachel Reeves announced \u00a314.5m for Grangemouth<\/a> to support a transition to low carbon and renewable industry on the site.<\/p>\n But the UK government has been accused of failing to deliver \u00a3200m pledged to Grangemouth from the National Wealth Fund.<\/p>\n![\"PA](\"https:\/\/ichef.bbci.co.uk\/news\/480\/cpsprodpb\/db72\/live\/55e971e0-daba-11f0-9381-b9b24075571c.jpg.webp\")
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