Ineos is pausing production at three chemical plants in Hull, blaming UK gas prices that are twelve times higher than in the US. The shutdown threatens up to 1,000 jobs while the company seeks cheaper US liquefied natural gas or tariff protection against Chinese imports.
Billionaire Sir Jim Ratcliffe's Ineos is pausing production at its three plants in Hull, citing high UK gas costs. Two of the plants have already been switched off, and the third will follow within days.
natural gas is the key input at the site, and Ineos says UK gas prices now run twelve times higher than in the US, and eight times more than the coal-based processes used by Chinese rivals. According to BBC News, Sir Jim said: "We are being forced to mothball some of the most efficient plants in Europe"
Up to 1,000 jobs affected
The shutdown could hit up to 1,000 of the company's staff, of whom 245 work directly at the site. But workers are expected to be kept on while Ineos tries to secure liquefied natural gas directly from the US, a process that could take up to a year, or waits for gas prices to fall.
Together the three plants produce acetic acid, used in vinegar, paint and glue; acetic anhydride, a key ingredient of aspirin; and ethyl acetate, used as a solvent and for decaffeinating tea and coffee. Ineos Acetyls is the only European producer of these chemicals, which feed into products ranging from food to explosives.
Company seeks tariff protection
Ineos is asking UK and EU governments to introduce tariff protections against Chinese chemical imports, since most of its output is exported to the EU. Meanwhile, the company says its Humberside plants produce materials with half the carbon footprint of US rivals and an eighth that of Chinese equivalents.
The wholesale price of natural gas has almost doubled in the UK and Europe since July, a rise tied to disruption of oil and gas supplies through the Strait of Hormuz following the US-Israel war in Iran.
Sir Jim described the government's energy policy as economic vandalism on an industrial scale. It marks the second time in less than a week that he has criticized government policy, having told the BBC previously that he had lost confidence in the UK.
Source: BBC News
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