Ineos Mothballs Hull Plants Amid UK Gas Price Crisis
Sir Jim Ratcliffe's Ineos is mothballing its three chemical plants in Hull due to high UK gas prices, affecting around 1,000 employees directly and potentially another 3,000 skilled jobs. The billionaire blames the current energy situation for 'destroying' his manufacturing base. He argues that gas prices in the UK are 12 times higher than in the US and eight times higher than in China, making it impossible to compete.
The plants produce raw materials used in various industries such as pharmaceuticals, clothing, cosmetics, construction, and military explosives. Ineos says two of the plants have already ceased production, with the third set to be paused soon. The company's energy costs are significantly higher due to recent price spikes, which have roughly doubled between July and September.
The situation has been exacerbated by global events such as the US-Israel war in Iran and disruptions to oil and gas supplies through the Strait of Hormuz. Ineos' boss, Sir Jim Ratcliffe, has courted controversy with his comments on immigration and tax residency. He is worth around £15 billion but has been a tax resident in Monaco since 2020.
The UK government has responded by stating that it will support the chemicals industry through various measures, including a £350 million fund for strategically important producers. However, Ineos remains critical of the government's energy policy, calling it 'economic vandalism' that is driving up global CO2 emissions and exporting jobs to other countries.