Ineos Pauses Hull Plant Production Over High Gas Prices

Chemicals conglomerate Ineos Group Limited is pausing production at three plants in Hull, England, citing natural gas prices that render the facilities unable to compete globally. Two plants have already ceased operations, with a third expected to follow. The facilities produce acetic acid, acetic anhydride, and ethyl acetate used in food preservation, pharmaceuticals, and construction.

Founder and chairman Jim Ratcliffe stated that UK gas prices are 12 times higher than in the United States and eight times higher than coal-based processes in China. He described the government's energy policy as "economic vandalism on an industrial scale" and noted that the company is being forced to mothball some of the most efficient plants in Europe.

While no redundancies are currently planned for the 240 direct employees, the move affects up to 1,000 workers at Saltend Chemicals Park and potentially 3,000 supply chain jobs in Humberside. Ineos is exploring the direct import of liquefied natural gas from the US and is calling for the UK and EU to implement tariff protections against Chinese imports.

The UK government defended its record, citing a £350 million co-investment scheme and upcoming electricity discount programs. Energy Minister Michael Shanks urged Ratcliffe to collaborate with the government on reindustrialisation plans, while the Department for Business, Innovation, Science and Trade acknowledged the move would be a concerning time for workers and their families.