Petrochemical giant given £7.6m

The cash will be used to modernise the Grangemouth plant

A £7.5m government grant to upgrade the giant oil refinery in Grangemouth will help safeguard more than 500 jobs, Scotland's first minister has said.

Alex Salmond was speaking from Ineos, were the cash will go towards the modernisation of the Kinneil Gas flex project.

The project aims to boost the processing of natural gas pumped into the plant from the Forties Pipeline.

The cash came on top of £100m investment made by Ineos.

Mr Salmond said it was the Scottish Government's responsibility to "direct every effort" to supporting firms like Ineos.

'Gases extracted'

He added: "The sheer scale of the economic contribution made by Scotland's sole refinery, Ineos Grangemouth, is vast.

"Their entire industrial complex employs more than 1,300 people and produces almost all of Scotland's vehicle fuel. It literally keeps Scotland moving."

Mr Salmond said the firm generated £9.3bn in revenue for Scotland and, after whisky, Scotland's chemical industry was the second highest export earner, creating about £1.9bn of business.

Ineos general works manager Gordon Grant, said: "These modifications will allow Ineos, here at Grangemouth, to fully utilise a wider range of the gases extracted from the North Sea which, in turn, will add considerable value to the Scottish economy."