Ineos handed a £120m lifeline to rescue UK’s largest chemical plant saving 500 jobs

Britain’s largest chemical plant will stay open thanks to a government lifeline, after high energy costs threatened its survival.

Ineos, the business empire owned by Manchester United investor Jim Ratcliffe, had been considering closing down its ethylene plant at Grangemouth. 

But the Government has today said it will provide £120million to protect 500 jobs there.

Ethylene is critical for medical-grade plastics and for use in the chemical supply chain, including water treatment.

The site had been at risk of closure due to high carbon taxes foisted on manufacturers.

Ineos shut down its oil refinery in Grangemouth in central Scotland, costing 430 jobs, in April.

Ineos, the business empire owned by Manchester United investor Jim Ratcliffe (pictured), had been considering closing down its ethylene plant at Grangemouth

In August, Stuart Collings, boss of the ethylene plant, told the Telegraph: ‘Unless there is a significant turnaround in the next couple of years, then Ineos will have to make a very difficult decision about the future of Grangemouth.’

Ratcliffe said that the investment from the Government ‘preserves the industrial capability the nation needs’.