Tobias Hannemann, CEO O&P UK said: “This investment forms part of our wider plans to secure a bright future for manufacturing at Grangemouth and will continue its renaissance as a world class petrochemicals site.”

INEOS will also invest £150m in Hull to construct a new Vinyl Acetate Monomer (VAM) plant.

VAM is a key component in a wide range of important high-end products including laminated windscreens, toughened glass, adhesives, coatings, films, textiles and carbon fibre.

Graham Beesley CEO of INEOS Oxide said: “This is an exciting time for INEOS and great news for manufacturing in the region.

“We are proud to be bringing production of this important material back to the UK. This will not only strengthen UK manufacturing but boost exports from the UK to Europe and the rest of the world.”