Germany-based Selas-Linde GmbH will complete the project, adding to the nine furnaces already on site.
The new furnace will improve the efficiency of the plant and increase its production capacity to ensure the business can continue to meet the growing demand for its products.
John McNally, CEO of INEOS O&P UK said: "Our plans to invest in the UK with the further expansion of our plant at Grangemouth, has been made possible because we now have access to the raw materials that we need. The successful completion in 2016 of our project to bring to Grangemouth plentiful supplies of competitive US shale gas ethane over a long-term agreement, has breathed new life into the plant.
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"Production from Grangemouth provides vital raw materials used extensively throughout UK industry. Having additional furnace capacity will provide a range of future opportunities not just for INEOS and for the site but also for the heartlands of manufacturing in Scotland and the North East and North West of England.
"It is entirely fitting that we make this announcement in the year we celebrate 25 years of continuous manufacture of ethylene on the KG plant. Investment into our Chemicals' business in Scotland alone has already surpassed £500m in the last 5 years. This latest announcement demonstrates INEOS' on-going commitment to its manufacturing operations at Grangemouth and investment into the UK."
Subject to planning approval, preparatory project work will begin later in 2018, with the main construction work starting in 2019 and commissioning towards the end of 2020.
(CM/LM)
