INEOS O&P UK is proposing to close the Ethanol Plant at Grangemouth in Q1 2025 due to a decrease in demand for ethanol in Europe and pressure from imports. The decision follows a review and consultation will begin with employees and the Trade Union. All ethanol-based employees will be offered alternative roles within the company, and customers will be supplied from another plant in Germany. The closure will involve redeployment of staff across the Grangemouth site. The plant, commissioned in 1982, has around 44 direct employees out of a workforce of almost 1000. Ethanol is used in various industries, including pharmaceuticals and healthcare.
All staff to be redeployed across the Grangemouth site if the proposal goes ahead
INEOS O&P UK are today announcing a proposal to close the Ethanol Plant at Grangemouth in Q1 2025. The company will start consultations in Grangemouth with its employees and the Trade Union about this proposal.
The decision comes after a lengthy review and is the result of a reduction in demand for ethanol in Europe combined with increasing pressure from imports of ethanol from other regions. This has resulted in the ethanol business at Grangemouth running at a loss for several years.
INEOS O&P UK CEO, Stuart Collings said, “It is never easy to close any plant and we are making this proposal only after a very thorough analysis. Beginning consultation now with our colleagues, means that we can begin to plan for redeployment and phase the programme for closure in a structured manner. All ethanol-based employees will be offered an alternative role within our business. Moreover, customers will be offered the supply of ethanol from INEOS’ other plant in Herne, Germany.”
Grangemouth has one ethanol plant at Grangemouth, commissioned in 1982. INEOS has another ethanol plant at Herne.
There are around 44 direct employees involved in the manufacture of ethanol at Grangemouth from a total workforce in the INEOS O&P UK business of almost 1000.
Ethanol is an alcohol that is used extensively in the pharmaceutical, healthcare and sanitiser industry. We make our ethanol ‘synthetically’ by the addition of water (steam) to ethylene. Another route to ‘fermentation’ ethanol is to react yeast cultures with sugars or starches.