Ineos mothballs three Hull chemical plants, blaming UK gas prices

Up to 4,000 jobs affected as Ineos seeks US LNG and tariff protections

Ineos is pausing production at three chemical plants in Hull, with up to 4,000 jobs in the company and its supply chain affected — 1,000 directly and 3,000 in the supply chain, the company confirmed. The facilities produce raw materials used to make pharmaceuticals, clothing, cosmetics, detergents, construction materials and military explosives in the UK and Europe. Gas is used as an ingredient in the production process.

Sir Jim Ratcliffe, whose wealth is estimated at around £15bn, said UK gas prices have left the plants unable to compete. “We are being forced to mothball some of the most efficient plants in Europe, but with gas prices now 12 times the level in the US and 8 times that of China, we just cannot compete,” he said.

Two of the three plants have already shut, and the third will stop production in coming days, according to the company. Ineos did not immediately specify when the plants might start again, or what conditions would make that possible.

The Humberside plants are “among the most efficient in the world,” Ineos said, producing materials with half the carbon footprint of US rivals and one-eighth the footprint of Chinese equivalents. One plant makes acetic acid, used in vinegar, paint and glue. Another produces acetic anhydride, a key ingredient of aspirin. The third makes ethyl acetate, used in solvents and in decaffeinating tea and coffee.

The wholesale price of natural gas has almost doubled in the UK and Europe since July, according to analysts cited by BBC News, who attributed the rise to a reduction in global oil and gas supplies.

In response, Ineos is working to obtain liquefied natural gas directly from the United States, where prices are lower. BBC News understands that effort could take up to a year. Workers across the three sites will be retained while Ineos waits for the imports to begin, or for gas prices to fall.

The company is also asking governments in the UK and the EU — where most of its products are exported — to put in tariff protections against Chinese products. The Department for Business, Innovation, Science and Trade has been approached for comment.

Ratcliffe escalated his criticism of UK policy, calling the current government’s energy policy “economic vandalism on an industrial scale.” It is the second time in less than a week he has publicly attacked government decisions. Last week, he told BBC News he had lost confidence in the UK, describing the country as “on the slide” and blaming high taxes and high immigration.

Ratcliffe has prompted past controversy with his immigration comments. He supported Brexit but has been a tax resident in Monaco since 2020. He also owns a large stake in Manchester United.