25 October 2013 11:33 [Source: ICIS news]
LONDON (ICIS)--INEOS’s petrochemical complex in Grangemouth, the UK, will reopen after trade union Unite on Friday agreed to a survival plan laid out by management to increase the competitiveness of the site.
The union had re-entered talks with Switzerland-headquartered chemicals company INEOS in a last-ditch bid to save jobs at the shuttered petrochemicals complex.
INEOS Grangemouth petrochemicals chairman Calum MacLean said that following a meeting with shareholders the facility will now remain open, following a dramatic u-turn by Unite to accept the company's survival plan – which includes wage, pension and union representation reforms at the site.
Referring to the plant closure announced earlier this week, he said: “That decision has been reversed”.
INEOS has also confirmed that the £300m ($484m, €353m) required for the plant’s survival would be made available, MacLean said in a televised press conference.
“With immediate effect all the units will start as of today,” he added.
He also said the union had agreed that there would be no strike action for three years, will accept a modified pension scheme and a three-year pay freeze.
INEOS on 23 October said the Grangemouth petrochemicals complex it operates would remain closed after being shut down early last week in preparation for anticipated industrial action. It also added liquidators would be appointed within a week.
The site in Grangemouth is one of Europe's largest ethylene cracker facilities and has the capacity to produce 1.02m tonnes/year of ethylene.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections