The Italian chemical producer Versalis, which is owned entirely by Italy-based ENI SpA, will invest the £45m to expand Scottish elastomer production in Grangemouth, Scotland.
The Scottish-site currently produces synthetic elastomers and lattices, servicing the automotive tyre industry.
Around £45m will be spent on the installing new equipment at the plant, with the plan to increase the site’s production by 25%.
Tyre technology is constantly developing and as of November this year it will be EU law that all tyres carry labels indicating performance levels for rolling resistance, noise and grip in wet conditions. This new requirement is set increase demand for tyres.
Versalis has been successful in their bid for a £600,000 Regional Selective Assistance (RSA) grant, which was awarded on the condition they created 20 jobs at the site. A further seven jobs will be created within contracting companies which supply a number of services.