Falkirk Grangemouth Framework for Growth

A partnership within the Falkirk Grangemouth area, involving Scottish Enterprise, Chemicals Sciences Scotland and Falkirk Council, has agreed: a vision for the development of a low-carbon chemicals and logistics focused 'Investment Zone of National Significance'; and an action plan which enables the area's fullest potential to be realised and its contribution to national economic resurgence to be gained. This report sets out a framework for the Falkirk Grangemouth area. The report aims to: assess the key challenges in developing the area's business infrastructure and profile; consider the economic impacts following infrastructure improvements and the implementation of the Investment Zone action plan; and outline the delivery plan for the framework.

The methodology consisted of: an examination of the current planning policy framework; consideration of the effects of existing road, rail and distribution infrastructure in positioning the area; an analysis of the chemical sciences sectors, logistics and other key sectors influencing economic growth in the area; surveys of businesses operating in the area and across key sectors; and comparisons with other major investment locations for investment in petrochemicals and the chemical sciences sector.

The report finds that the economic potential of Falkirk Grangemouth's chemicals sector is substantial. The area has one of the highest concentrations of manufacturing industry of any area of Scotland, with strengths in chemicals, engineering and related sectors such as logistics and distribution. However, the area faces various challenges, including its physical infrastructure, a future shortage of available and suitably qualified labour, increasing competition from the Middle and Far East in the chemicals sector, and a low strategic profile. This framework promotes the future development of the Grangemouth Falkirk area as an Investment Zone of National Significance and one of Europe's leading innovation centres in the petrochemical and chemical sciences sectors. Economic impact modelling suggests that major economic benefits can arise from the partners' vision for the area. Implementation of the Falkirk Grangemouth Investment Zone is anticipated to create: an estimated 6,000 jobs; 2,300 net additional chemicals sector jobs, with a GVA per employee of £218,000 per annum; an additional 5,000 jobs locally; and a combined GVA impact of £410m for the Scottish economy.

The report outlines five objectives, with supporting activities, which aim to achieve the partnership's vision over the next 15 to 20 years. These include: repositioning the area in the face of strategic market change; minimising flood risk; enabling infrastructure to release capacity; promoting an enabling regulatory and planning environment; and building a strategic perspective of the Grangemouth Falkirk area across the business base. The report suggests that the Falkirk Grangemouth Investment Zone will be an initiative of national scale, requiring concentrated and prioritised resources for implementation. It recommends that the approach to implementation needs to be fit for purpose. Those leading the implementation need to exercise influence over a range of public sector bodies and effectively engage lead companies and the general business sector. The Falkirk Grangemouth Investment Zone needs to be able to offer comparable attractions to businesses in its target sectors.