Ineos backs Britain with £1 billion investment

Petrochemical giant Ineos announce £1 billion of investments in UK energy assets, including upgrades to a major north-sea oil pipeline and their Grangemouth plant.

Oil rig in sea
Ineos, one of the world's largest manufacturers of chemicals and oil products, has announced a £1 billion investment in its UK energy assets.

Ineos investment represents company's commitment to UK operations

Sir Jim Ratcliffe, Britain’s richest man and founder of Ineos, said the investment emphasised the company’s commitment to its UK-based operations."At an uncertain moment for the country, Ineos has confidence in its businesses and is committed to continue investing in manufacturing and high-skilled jobs in the UK," he said."Ineos is a supporter of British manufacturing and this £1 billion investment underlines our confidence in our business in the UK. These investments will ensure that our UK assets continue to be world class for many years to come."

Half investment funds to overhaul major North Sea pipeline

Half the money will go towards overhauling the ageing Forties Pipeline System (FPS), which carries about 40 per cent of Britain’s oil and gas from the North Sea and which had to be closed down for two months in 2017 - shortly after Ineos bought the pipeline from BP - because of a crack in the onshore section.Ineos, which employs 15,000 people worldwide and has annual sales of $54 billion, said on Wednesday that overhauling the 500km pipeline system would transform the asset and extend its operational life by at least 20 years, into the 2040s.

Company to invest in Grangemouth refinery and Hull

The company will also invest £350 million at its Grangemouth refinery site in Scotland to develop a new steam and power plant, delivering "significantly improved" energy efficiency. It is also to invest £150 million in a new petrochemicals factory in Hull to create vinyl acetate monomer, used in adhesives, packaging and textiles.Andrew Gardner, chief executive of Ineos FPS, said, "North Sea oil and gas producers are telling us that they want to be in the North Sea well into the 2040s, so we are making this commitment to be there with them."Following acquisition of FPS in 2017, we are now embarking on a period of investment that will guarantee that the system can support them for decades to come."Tobias Hannemann, chief executive of O&P UK at Grangemouth, said, “This investment forms part of our wider plans to secure a bright future for manufacturing at Grangemouth and will continue its renaissance as a world class petrochemicals site while supporting the refinery, FPS and wider UK economy.”On the decision to build the new Vinyl Acetate Monomer plant in Hull, Graham Beesley, CEO of Ineos Oxide, said, “This is an exciting time for Ineos and great news for manufacturing in the region. We are proud to be bringing production of this important material back to the UK. This will not only strengthen UK manufacturing but boost exports from the UK to Europe and the rest of the world.”
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