Britain guarantees $394.2 million loan for Grangemouth Petrochemical

Britain said it would guarantee a $394.2 million loan for Grangemouth petrochemical plant in Scotland, underscoring its commitment to the region ahead of a September referendum. The Treasury said the move would protect thousands of jobs in Scotland and would allow work to start straight away at Europe’s largest ethane storage tank.

Ineos, the owners of the Grangemouth plant, have invested more than 300 million pounds at the site. The Treasury said the loan guarantee from the government would enable it to raise financing on 230 million pounds to cover the import facility and storage tank to be built at the site.

Scots will vote on September 18 as to whether they wish to break away from the union with England and become independent.