- Grangemouth plant closure results in 80 direct and 500 indirect job losses.
- UK energy prices have doubled in 5 years, now five times higher than USA.
- Synthetic ethanol, crucial for pharmaceuticals, will now be imported.
Closure of Grangemouth Plant
The Grangemouth plant, the last synthetic ethanol facility in the UK, has been closed, resulting in the loss of several hundred jobs. This closure marks a significant downturn for the UK chemical industry, which has seen ten large chemical complexes shut down in the past five years.
Energy Costs and Industry Impact
Energy prices in the UK have doubled over the last five years and are now five times higher than those in the USA, making it difficult for the UK to compete globally. This economic pressure has contributed to the decline of the chemical manufacturing sector, which has not seen a new plant built for a generation.
Importance of Synthetic Ethanol
Synthetic ethanol, essential for producing many pharmaceutical drugs, will now need to be imported. The Grangemouth plant was one of only two such facilities in Europe, having produced the equivalent of 25 billion bottles of Scottish whisky over its 40-year history.
Call for Government Action
The industry is urging the UK government to implement policies that provide competitive energy pricing, support decarbonization without penalizing domestic operators, and protect UK manufacturing from import incentives. Without these changes, the sector faces further decline.
Job Losses and Economic Impact
While direct employees from the ethanol plant will be redeployed within the Grangemouth chemicals business, there will still be a net loss of 80 jobs. Additionally, more than 500 indirect roles in the wider economy will be affected, highlighting the broader economic impact of the plant's closure.
