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| Grangemouth dispute: Ineos says plant will stay open | Grangemouth dispute: Ineos says plant will stay open |
| (about 1 hour later) | |
| The Grangemouth petrochemical plant near Falkirk is to stay open after a new deal was struck with workers. | 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. | 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. | 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. | But on Friday, Ineos said it would reopen the plant and the neighbouring oil refinery with immediate effect. |
| The news was welcomed by the Unite union and political leaders. | |
| The company said the move had followed a "dramatic U-turn" by 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. | 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. |
| Ineos also confirmed it would invest a further £300m in the site's long-term future. | |
| The company's announcement was greeted by huge cheers from the workforce, who had gathered at the plant to be told of the company's decision. | |
| Unite Scottish secretary Pat Rafferty said: "Relief will ring right round the Grangemouth community, and across Scotland today. | |
| "Hundreds of jobs that would have been lost can now be saved and £300m will be invested into the plant." | |
| First Minister Alex Salmond described the announcement as a "tremendous fillip for the workforce and the whole Grangemouth community, following what could have been a potential disaster". | |
| He said it had been "a great team effort from all concerned", including the unions and workforce, the management and governments. | |
| "I am delighted that people have rallied round to protect these jobs, and now we can all agree that Grangemouth has an outstanding future," he added. | |
| Scottish Secretary Alistair Carmichael also welcomed the announcement, saying that it was "the news that we all wanted". | |
| "The staff and their families have been through a very stressful and uncertain time," he said. | |
| "They have been through a hell of a week and I hope they have a much better weekend as a result of today's announcement." | |
| Mr Carmichael added: "They can look to the future with an optimism which was absent earlier in the week." | |
| Ineos' future plans include investing a further £300m in the site. | |
| 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. | 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." | "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. | 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. | 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". | 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. | 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 had 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. |