GRANGEMOUTH, Scotland, April 21 /PRNewswire/ --

- INEOS Disappointed at Union Refusal to Attend ACAS Talks

- INEOS Writes to all Employees Urging Union to Call off Strike and Return to the Negotiating Table

- INEOS Urges Union to Keep Open Deep-Water Jetty and Allow Tankers to Supply Scotland's Fuel During Dispute.

INEOS is disappointed that the UNITE Trade Union have today turned down an invitation by ACAS to attend talks to help solve the Grangemouth dispute that will disrupt fuel supplies to Scotland and the north of England.

Tom Crotty, INEOS CEO, says: "We have always made it clear that the company is ready to attend talks at ACAS to help end the current dispute. It is extremely disappointing to hear that the UNITE Trade Union is not willing to involve ACAS at this stage. The union's planned strike could have significant consequences for Scotland and the north of England and we would urge them to work with us to find a way of resolving this issue."

INEOS is now writing to all 1350 Grangemouth employees asking them to accept a new set of revised pension proposals. The company is urging the union to call off its strike scheduled for 27th - 29th April and engage in meaningful negotiation. Because of safety issues, this strike will effectively close the plant for a month.

The letter has been written by Tom Crotty, CEO INEOS Olefins, and details many of the concessions made by the company in an attempt to reach agreement on the pensions issues at the heart of this dispute.

Tom Crotty is urging the Union and its members to re-consider the decision to take strike action. Mr Crotty said, "Under the consultation timetable we had previously agreed, there is still ample time for discussions to take place and for the dispute to be resolved. The strike action is premature and I would urge the Union and the local Union members to call off the strike, to allow for these discussions to take place."

In a separate development, INEOS is asking union representatives to reconsider the company's proposal to allow fuel to be brought to its deep-water jetty during the strike and allow tankers to supply Scotland's fuel during dispute. For this scheme to work, the union would have to allow some of its members to operate the jetty and would also have to agree to keep open parts of the plant.

In the meantime, INEOS has to continue to prepare for a total shut down of the refinery and petrochemical plant by next Friday in advance of the strike action to ensure that the facility is as safe as possible during the strike. Impact on fuel production from the site will start tomorrow (Monday) when the first of the site's crude oil units is shut down.

The dispute centres around INEOS' determination to make Grangemouth a competitive long-term business. Addressing the pensions issue is part of this process. Currently over a quarter of the entire money that INEOS spends on employees at Grangemouth goes into the pension scheme and independent experts say that this figure could rise to almost 50% going forward. This figure is excessive and unsustainable in the longer term.

INEOS is proposing to retain a final salary scheme for all existing members, paying 1/60th salary for every year worked, still an attractive and competitive pension scheme compared to other pension plans across ons in the country. INEOS will still pay the lion's share of the costs, but for the first time the workforce will have to make a contribution to their retirement. INEOS has proposed a 6% employee contribution, phased in over the next 6 years. This will still leave employees in a better position than the majority of UK private company employees.

The company proposes a different plan for future new employees but one that will continue to allow it to attract highly skilled workers to the Grangemouth site where the typical remuneration package for a qualified technician is valued at almost GBP60,000.

INEOS wants to invest in Grangemouth, but the conditions need to be right.

WE ARE FIGHTING FOR THE FUTURE OF GRANGEMOUTH

Notes to Editors

1. INEOS is currently developing plans to invest GBP750 million in plant modernisation projects to secure Grangemouth's long-term future.

a. An improvement programme on our G4 ethylene plant before 2011

b. Modernisation of the butadiene facility which supports G4 operating

c. Improving economics on our polymer plants, enabling them to compete in Europe;

d. Improving the performance of the Benzene plant and gasoline treatment unit.

e. Optimisation of our Refinery to support the growth in the site along with ongoing development of shared service areas to meet the requirements of the new shape of the site.

2. INEOS is only part way through a broad consultation on pension reform, which started in September 2007 and is due to end on 30th June 2008. Following this 9-month period the Company has said that no major changes will be implemented for existing employees until 2009 and these will then be phased in over time. This goes well beyond the statutory 60 days consultation required by law.

3. The current Pension Benefit costs INEOS over a quarter of the salary bill at Grangemouth compared with the industry norm of 16%(1) and currently there is no sharing of this cost between Company and employee. Employees receive a final salary pension with a 1/60th accrual for no contribution. They are able to take this unreduced from age 60. (30 years service would therefore produce a pension of 50% of final salary for life at age 60, with no contribution from the employee).

4. The proposed Pension benefit will maintain a very good final salary 60th accrual pension for existing employees. It will be affordable in the longer term by phasing out over time unreduced early retirement and phasing in over time employee contributions, with employees eventually being asked to contribute around 6% for a 1/60th accrual 2011. Changes will apply only to future service.

5. The majority of company pension schemes across the UK have switched to Defined Contribution (DC) plans. It is proposed that new starters yet to bet employed by INEOS would be offered a good DC plan. DC pension plans now account for 83% of those open to new employees at FTSE 100 companies.

6. INEOS has a skilled workforce. The Company believes it is important to have a good remuneration package and pension in addition to salaries. The typical value of the remuneration package for qualified technicians at the plant is between GBP50,000 to GBP60,000 p.a. This includes salary, shift allowance, bonus and overtime. In addition to this the current non-contributory, final salary pension scheme with one 60th accrual, is worth more than GBP10,000 p.a. based on current funding and the availability of share ownership.

7. INEOS has a history of good industrial relations at its other 75 facilities throughout the world. The company is committed to securing growth and a sustainable long-term future for each of its manufacturing sites. To achieve this at Grangemouth, over GBP750m of investment is necessary in the facility over the next five years. Failure to modernise and reform the pension plan arrangements will put this investment at risk and lead to a review of the site's current operations.

8. INEOS acquired Grangemouth from BP in 2005. There are 5 INEOS businesses within the assets at Grangemouth. INEOS Olefins, INEOS Polyolefins, INEOS Refining, INEOS Technologies and INEOS Enterprises. INEOS employs around 1400 people and the site occupies almost 1,700 acres of land - or around 640 football pitches. The site indirectly supports thousands of jobs in the local area.

(1) Calculated by Watson Wyatt based on an INEOS comparator group.

Press contacts: Media Zoo,Mark Killick, (t) +44(0)7836-634449. Sion Taylor, (t) +44(0)7768-372714; Geraldine McGrory (t) +44(0)7870-657531; Richard Longden, INEOS, +44(0)7710-371998, richard.longden@INEOScapital.com; David East, INEOS Grangemouth, +44(0)1324-476948, david.east@innovene.com