High Gas Prices Force INEOS to Halt UK Acetyl Production

INEOS has suspended production at two major acetyl facilities in Humberside, UK, citing 'ridiculously' high gas prices. The company will idle a third facility soon, impacting 245 staff directly and up to 755 workers more broadly.

The decision comes after Ineos invested £30m into the Hull plant last July, which included switching natural gas to hydrogen sourced onsite, cutting emissions by 75%. However, the company claims it cannot compete with US production where gas prices are 12 times cheaper and imports from China are 'dirt cheap'.

The suspension will affect Europe's largest acetic acid producer and one of its largest suppliers in Asia. Ineos Chairman Sir Jim Ratcliffe said high gas prices are destroying the manufacturing base, jobs, and increasing the environmental burden with replacement products.