Committee publication · Correspondence · 18 June 2025

Letter from INEOS relating to information requested during 2 April evidence session, dated 6 June 2025

From: Scottish Affairs Committee

Inquiry: GB Energy and the net zero transition

Summary

INEOS Chemicals responds to the Scottish Affairs Committee's April 2025 inquiry about impacts of Petroineos' Grangemouth refinery closure. The company confirms redundancies affecting INEOS employees supporting refinery operations and outlines consultation processes across separate legal entities. It discloses that redundancy packages exceed statutory minima with additional voluntary redundancy enhancements, but declines to detail agreements pending completion of ongoing consultation.

Key findings

  • Petroineos' decision to cease refining operations at Grangemouth impacts INEOS Olefins & Polymers UK employees providing refinery support services, plus third-party suppliers.
  • Affected employees belong to two separate INEOS legal entities (INEOS Chemicals Grangemouth Limited and INEOS Infrastructure Grangemouth Limited), triggering independent consultation processes distinct from the Petroineos process.
  • Only one of three consultation processes with affected employee groups has concluded; further details cannot be disclosed until remaining consultations complete.
  • Redundancy packages offered enhance statutory payments, with additional enhancements available for voluntary redundancy uptake.

Tone

Procedural

Topics

employment-redundancyindustrial-transitionenergy-infrastructurenet-zero

Key actors

Patricia Ferguson MP, Colin Pritchard, INEOS Olefins & Polymers UK, INEOS Chemicals Grangemouth Limited, INEOS Infrastructure (Grangemouth) Limited, Petroineos Manufacturing Scotland Limited, Kirsteen Sullivan MP

Notable line

… the refinery transition, provides for payments which represent an enhancement on the statutory redundancy payments; and  There is a further enhancement to these terms in the event that an employee volunteers …

Key Quotes

Petroineos' decision to cease refining operations at the Grangemouth refinery and transition to an import terminal, does impact on INEOS Olefins & Polymers UK (O&P UK) specifically employees who are engaged in the provision of services to support the refinery operations.
Colin Pritchard, INEOS Olefins & Polymers UK · Confirming the scope of redundancy impact from the refinery closure decision
… only one out of three consultation processes has concluded and it would therefore be inappropriate to divulge details of the agreements reached in this consultation ahead of concluding the other two.
Colin Pritchard, INEOS Olefins & Polymers UK · Explaining why full redundancy details cannot yet be disclosed
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Source · parliament.uk record ↗

Letter from INEOS relating to information requested during 2 April evidence session, dated 6 June 2025 | Beyond The Vote | Beyond The Vote