Sir Jim Ratcliffe's industrial giant Ineos has suspended production at its three plants in Hull, UK, citing high gas prices. The firm claims gas prices in the UK are twelve times higher than in the US and eight times more expensive than coal-based processes used by Chinese competitors. This move affects up to 1,000 staff, with 245 working directly at the site. Ineos Acetyls, part of the Ineos Group, is the sole European producer of key chemicals used in various products.
The production halt includes plants making acetic acid, used in vinegar, paint, and glue, acetic anhydride, a key ingredient in aspirin, and ethyl acetate, used as a solvent and for decaffeinating tea and coffee. Ineos is exploring options to buy liquefied natural gas (LNG) directly from the US at lower prices, which could take up to a year, or waiting for gas prices to decrease. The company is also seeking tariff protections against Chinese products from the UK and EU governments.
Sir Jim Ratcliffe criticized the UK government's energy policy, calling it "economic vandalism on an industrial scale." He also expressed concerns about the country's competitiveness, citing high taxes and immigration. Ratcliffe, who owns a large stake in Manchester United, has previously sparked controversy with his comments on immigration. His wealth is estimated to be around £15bn, and he has been a tax resident in Monaco since 2020.
The UK's wholesale natural gas price has almost doubled since July, affecting industries across the country. Ineos says its Humberside plants are among the most efficient in the world, producing materials with half the carbon footprint of US rivals and only one-eighth that of Chinese equivalents. The company had previously cut a fifth of its workforce, citing high energy costs and competition from China.
The Department for Business, Innovation, Science and Trade expressed concern for workers and their families, stating they are taking bold action to support the chemicals industry, including £350 million for strategically important chemicals producers. They have also implemented trade measures on foreign chemicals imports and are tackling high electricity costs.
This is not the first time Sir Jim Ratcliffe has criticized government policy. Last week, he told BBC News that he has lost confidence in the UK, describing the country as "on the slide" due to high taxes and high immigration. Ratcliffe's comments have sparked debate, with some calling for him to apologize.
The production halt at Ineos's UK plants highlights the challenges faced by industries due to high energy costs. The company's efforts to find alternative solutions and seek government support underscore the need for a competitive and sustainable energy policy. The impact on workers and the local economy will be closely watched as the situation develops.
Key points
- Ineos's production halt affects up to 1,000 staff and cites high gas prices as the primary reason.
- Sir Jim Ratcliffe criticizes the UK government's energy policy, calling it "economic vandalism on an industrial scale."
- The UK's wholesale natural gas price has almost doubled since July, affecting industries across the country.
