INEOS Halts Production as Soaring Gas Prices Threaten UK Industry

Ineos, a chemicals giant led by billionaire Sir Jim Ratcliffe, has suspended production at three UK plants due to soaring gas prices. The company's Humberside operations produce essential chemicals for industries like pharmaceuticals, cosmetics, and construction materials.

UK gas prices are now 12 times higher than in the US, which has made it impossible for Ineos to compete globally. Sir Jim Ratcliffe stated that his company is being forced to 'mothball' some of Europe's most efficient chemical plants.

The sites affected by the production pause are expected to cost around 1,000 workers their jobs, including 245 employees directly based at the sites. However, staff will remain on while the company explores a solution to buy liquefied natural gas from the US, which could take up to a year.

Ineos is calling for tariff protection against Chinese imports as it warns that high energy costs are undermining the UK chemicals sector. The company claims its operations have around half the carbon footprint of US competitors and one-eighth of the emissions associated with equivalent production in China.