Billionaire industrialist Sir Jim Ratcliffe is moving to mothball three chemical plants in Hull, asserting that the UK’s “ridiculously high” gas prices have made it impossible to maintain market competition. Ineos, the conglomerate owned by Ratcliffe, confirmed on Tuesday that production has already been suspended at two sites, with the third facility expected to cease operations within days.
The shutdown impacts 240 workers directly employed at the Humberside locations. However, the company warned that a permanent closure could put up to 4,000 roles at risk when considering those employed across the broader supply chain.
Ratcliffe expressed frustration regarding the necessity of shuttering facilities that are among the most efficient in Europe. He argued that the current situation represents a significant loss of competitiveness, noting that UK gas prices are currently 12 times higher than in the US and eight times more expensive than the coal utilized by Chinese competitors.
The Manchester United co-owner labeled the government’s energy strategy “economic vandalism on an industrial scale.” He cautioned that the policy is driving manufacturing jobs to China and the US, while simultaneously increasing global CO2 emissions. According to Ratcliffe, the high local prices are essentially offloading production to regions with higher carbon footprints; he cited that replacement products from the US carry double the emissions, while Chinese alternatives produce eight times the levels of pollutants.
Gas prices remain a critical issue for the European chemicals sector, as the resource is a primary feedstock for products ranging from pharmaceuticals to detergents. While the UK historically relied on North Sea reserves, shifting production levels have forced an increased dependence on imports, keeping domestic costs elevated compared to other regions.
In response, a government spokesperson stated that officials have implemented “bold action” to support the domestic chemicals sector. This includes the introduction of a £350m co-investment initiative alongside new trade measures targeting foreign chemical imports.
Authorities are also rolling out relief measures to mitigate high electricity expenses for manufacturers. These include a discount scheme designed to cut bills by up to 25% for over 10,000 businesses, and a “supercharger” program providing more than £400m annually to the nation’s most energy-intensive firms.
Despite these government efforts, the spokesperson acknowledged the severity of the situation for the local community. “While this is a commercial decision from Ineos, we know this will be a concerning time for workers in Saltend and their families,” the representative added. The report also notes that “I’m sure people will find it hard to believe that we are being forced to mothball some of the most efficient plants in Europe,” Ratcliffe said in a statement. “[W]e just cannot compete.”. The report also notes that the co-owner of Manchester United also said that the UK government’s energy policy was “leading to economic vandalism on an industrial scale” by losing jobs to China and the US “and driving up global CO 2 emissions at a.
Comments