Ineos writes down value of UK Grangemouth petrochem plant to nil

08-Oct-13

Oil refiner Ineos has written down the value of its Grangemouth, UK petrochemical plant to zero, it said on Friday, further raising the stakes in a complex dispute with workers at the facility who are due to start industrial action next week. As per Reuters, Ineos said it had invested more than 1 bln pounds (US$1.62 bln) since taking over at the Grangemouth plant in 2006, but that it continued to lose money. "We had no option but to write down these assets," Calum MacLean, chairman of the Grangemouth Petrochemicals Business, said. After four years of heavy losses, the petrochemicals business is effectively worthless. Without lower costs and an alternative source of additional raw material it will close 2017, at the latest." Writing down the value of the plant could put pressure on the workers to accept lesser terms and conditions in their dispute with Ineos.