Industrialist Sir Jim Ratcliffe has announced that his company, Ineos, is being forced to suspend operations at three of its facilities in Hull. The firm, which produces essential raw materials for industries ranging from pharmaceuticals to construction, warned that it can no longer remain competitive under current economic conditions.
According to the company, UK natural gas prices have surged to 12 times the levels observed in the United States and eight times those linked to coal-based processes utilized by competitors in China. Sir Jim described the situation as critical, stating that the business is effectively being compelled to mothball some of Europe’s most efficient production sites.
Two of the Humberside plants have already ceased operations, with a third set to close within the coming days. These sites manufacture chemicals such as acetic acid, acetic anhydride, and ethyl acetate—substances vital for the production of aspirin, paints, glues, detergents, and military explosives.
While the shutdowns will impact up to 1,000 employees, the company intends to retain staff while exploring alternative options, such as sourcing cheaper liquefied natural gas (LNG) directly from the US. This transition could take up to a year, or the company may simply wait for market gas prices to normalize.
Global wholesale gas prices have nearly doubled across the UK and Europe since July, a spike largely attributed to supply disruptions in the Strait of Hormuz following the conflict involving the US, Israel, and Iran. Consequently, Ineos is now calling on both UK and EU authorities to implement tariff protections to shield domestic output from cheaper Chinese imports.
Sir Jim defended his facilities as world-leading, noting they operate with half the carbon footprint of American rivals and just one-eighth that of Chinese competitors. However, he heavily criticized the current government’s energy strategy, labeling it as economic vandalism on an industrial scale.
This marks the second time in a week that the businessman, who also holds a significant stake in Manchester United, has voiced sharp disapproval of UK policy. He recently informed the press that he has lost confidence in the nation’s trajectory, characterizing the country as being on a downward slide fueled by high immigration and taxation.
Sir Jim, whose estimated wealth stands at approximately £15 billion, remains a polarizing figure. Although he was a vocal proponent of Brexit, he has maintained tax residency in Monaco since 2020 and has previously sparked controversy with his public remarks on immigration.
The Department for Business, Innovation, Science and Trade has been approached for comment regarding the closures and the company’s assessment of current energy policies. The report also notes that but with gas prices now 12 times the level in the US and 8 times that of China, we just cannot compete, sir Jim said: “We are being forced to mothball some of the most efficient plants in Europe. The report also notes that ineos said the move will affect up to 1,000 of its staff, of whom 245 work directly at the site.
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