Ineos Halts UK Chemical Production Amid Record-Breaking Gas Prices
British chemical conglomerate Ineos has halted operations at its three main production facilities in Humberside due to soaring domestic energy costs. The move affects up to 1,000 internal staff members and puts around 4,000 regional manufacturing jobs at risk.
The company cited severe competitive disadvantages caused by natural gas prices being 12 times higher than those in the United States and eight times the cost of coal-based methods used by Chinese manufacturers.
Ineos chairman Sir Jim Ratcliffe criticized current national governance regarding the industrial energy sector, stating that domestic gas prices have nearly doubled since July 2026 due to global supply disruptions in the Strait of Hormuz following the US-Israel conflict in Iran.
The UK sites generate carbon footprints half the size of American facilities and one-eighth those of Chinese competitors. However, sustained operating losses forced two facilities to close immediately, with the third scheduled to halt output within days.