Ineos¡¯s Polyolefin Plan Faces Closure Risk in Scotland
2025-8-20
British media recently reported that due to soaring energy costs, the largest chemical plant in the UK is struggling to survive and facing the risk of closure.
Ineos has warned that its olefin and polymer (O&P) plant in Grangemouth, Scotland is facing an existential threat due to soaring taxes and energy bills imposed on UK manufacturers.
The plant supplies raw materials to another cracking unit in Scotland, the Mossmoreland plant operated by Shell and ExxonMobil, and also supplies ethylene to factories across England. The plan is known to directly employ 900 employees and indirectly employ thousands of employees through the supply chain, making it one of the largest industrial employers in Scotland. If the plant goes bankrupt, it will cause a heavy blow to the local economy.
According to a report released by the UK Office for National Statistics in June, the cost of industrial electricity in the UK increased by as much as 75% from January 2021 to the end of 2024, and the price of industrial natural gas more than doubled. These outrageously high energy prices, five times higher than those in the United States and three times higher than those in the European Union, have led to a significant decline in the output of energy intensive industries.
INEOS had previously warned of the two most pressing threats to the survival of the European chemical industry: high natural gas costs and rising carbon emission costs. If urgent and bold actions are not taken in these two areas, Europe¡äs competitiveness will continue to weaken.
Ineos has warned that its olefin and polymer (O&P) plant in Grangemouth, Scotland is facing an existential threat due to soaring taxes and energy bills imposed on UK manufacturers.
The plant supplies raw materials to another cracking unit in Scotland, the Mossmoreland plant operated by Shell and ExxonMobil, and also supplies ethylene to factories across England. The plan is known to directly employ 900 employees and indirectly employ thousands of employees through the supply chain, making it one of the largest industrial employers in Scotland. If the plant goes bankrupt, it will cause a heavy blow to the local economy.
According to a report released by the UK Office for National Statistics in June, the cost of industrial electricity in the UK increased by as much as 75% from January 2021 to the end of 2024, and the price of industrial natural gas more than doubled. These outrageously high energy prices, five times higher than those in the United States and three times higher than those in the European Union, have led to a significant decline in the output of energy intensive industries.
INEOS had previously warned of the two most pressing threats to the survival of the European chemical industry: high natural gas costs and rising carbon emission costs. If urgent and bold actions are not taken in these two areas, Europe¡äs competitiveness will continue to weaken.