By GB News (World News) | Created at 2026-09-22 11:51:04 | Updated at 2026-09-22 12:37:13
52 minutes ago
Sir Jim Ratcliffe has blamed “ridiculously high energy prices” after his Ineos firm announced three UK chemical plants would be mothballed.
Hundreds of jobs are at risk after Ineos said operations would be suspended at the sites in Hull.
Sir Jim said UK energy policy had led to “economic vandalism on an industrial scale” and claimed current prices meant “we just cannot compete”.
The billionaire industrialist and part-owner of Manchester United said domestic gas prices were 12 times greater than in America, while China could use coal to manufacture at an eighth of the cost.
The Humberside facilities are now being taken out of operation despite being “some of the most efficient plants in Europe”.
Ineos has 245 direct employees at the affected sites, with hundreds more involved in specific projects.
The plants support 4000 jobs in the local economy and supply chain.
The sites at risk are the Acetic Acid plant, the Anhydride plant, and the Ethyl Acetate plant.
Hundreds of jobs are at risk after Ineos said operations would be suspended at the sites in Hull
INEOS
These produce raw materials for sectors including pharmaceuticals, clothing, cosmetics, detergents, construction and military explosives.
They are the last large European manufacturer of acetyls.
Like many chemical plants, they use gas for both energy and as a feedstock for other products. This means that soaring energy costs have hit them hard.
But any overseas manufacture is likely to be worse for the planet, Sir Jim said.
Products made in the Hull factories had half the carbon footprint of those produced in America and an eighth of the size of Chinese goods.
This meant we were “exporting jobs to China and the United States and driving up global CO2 emissions at a stroke”.
Ineos has announced the plants will be mothballed “until further notice”.
Two have already ceased production and the third is due to come offline within days. Any permanent closures would have a “dramatic” impact on jobs.
Insiders said the “current gas price” made competition impossible, despite Ineos repeatedly investing in the plants.
Sir Jim said: “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 but with gas prices now 12 times the level in the US and 8 times that of China, we just cannot compete.
“Not only is the ridiculously high gas price in the UK destroying our manufacturing base and the jobs of hard-working people on Humberside, it is also massively increasing the environmental burden with replacement products supplied from the USA at double the carbon emissions and from China at 8 times the emission level.
“The UK Government’s energy policy is leading to economic vandalism on an industrial scale, exporting jobs to China and the United States and driving up global CO2 emissions at a stroke.”
Sir Jim has taken aim at the Labour Government over the last week, labelling its stance on the North Sea as “insanity”.
He has also repeatedly warned over the future of the European chemicals sector, saying high energy prices and carbon taxes make it vulnerable to Chinese imports.
A Government spokesperson said: “While this is a commercial decision from INEOS, we know this will be a concerning time for workers in Saltend and their families.
"We’ve taken bold action to support our chemicals industry including £350 million for strategically important chemicals producers, which will be available on a co-investment basis.
“We’ve also put trade measures in place on foreign chemicals imports and are tackling high electricity costs via our Supercharger and British Industrial Competitiveness Scheme to keep our chemicals sector competitive.”
