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Grangemouth dispute: Ineos says plant will stay open | |
(35 minutes later) | |
The Grangemouth petrochemical plant near Falkirk is to stay open after a new deal was struck with workers. | |
Staff were told in a mass meeting at 11:00 that the decision to close the site would be reversed. | |
Operator Ineos announced on Wednesday that the plant was to shut, with the loss of 800 jobs, after union members rejected a survival plan. | |
But on Friday, Ineos said it would reopen the plant and the neighbouring oil refinery with immediate effect. | |
The company said the move had followed a "dramatic U-turn" by the union Unite and its "belated recognition" that the company's survival plan was the only way to ensure Grangemouth's long-term future. | |
It added that Unite had agreed to taking no strike action for three years, moving to a "modern" pension scheme and accepting a three-year pay freeze. | |
The company's announcement was greeted by huge cheers from the workforce, who had gathered at the plant for the announcement. | |
Ineos confirmed it would invest a further £300m in the site's long-term future. | |
Grangemouth chairman Calum MacLean said: "It is a huge investment and that investment was only rightly to be done if we had a long-term sustainable base. | |
"What we have now done is given the chemicals business another 15 to 20 years on the back of new raw materials, new contracts and significant investment." | |
Mr MacLean would not dismiss the prospect of redundancies, but said they would be "very limited". He also denied that the company had demanded any additional concessions from the union. | |
The company said the Scottish government had indicated it would support its application for a £9m grant to help finance the terminal and the UK government had given "pre-qualification approval" for a £125m loan guarantee facility. | |
Ineos chairman Jim Ratcliffe added it was "a victory for common sense". | |
The closure move came after workers rejected a deal which would have changed their pay and pensions. | The closure move came after workers rejected a deal which would have changed their pay and pensions. |
Ministers and the Unite union were involved in top-level talks on Thursday to try to save the site and a fresh offer was made by unions to the company. | |
Scotland's Finance Secretary John Swinney and Scottish Secretary Alastair Carmichael voiced confidence that the plant could have a future following their talks with unions and management at the site on Thursday. | |
The company has already laid off about 2,000 contractors since it shut down the complex. | The company has already laid off about 2,000 contractors since it shut down the complex. |