Oil giant, Ineos has indicated that it might be planning to shut down its petrochemical plant located in Grangemouth in Scotland, sparking fears of job losses.

The company indicated that the plant might be closed due to the rising costs and a fall in the production of gas from the North Sea. Company chairman Jim Ratcliffe, who is the billionaire founder of the chemicals group, confirmed reports by saying that the plant is on the crossroads. He pointed out that the plant has not been a successful venture for the company and it has lost a significant amount of money.

"To have a future, it needs cheap feedstocks and a sensible cost structure. If we can't resolve those issues, it would need to shut down," he said.

The petrochemical plant used the gas input from North Sea adding to the cost significantly. The firm has not officially stated that the plant would be closed. There are concerns that the closure could put more than 1,000 jobs at risk of being axed.

Pat Rafferty, Scottish secretary of Unite, which represents 1,200 workers at Grangemouth, expressed disappointment over the remarks from the chairman ahead of the talks on pensions and future site investments.