Ineos Mothballs Three Hull Plants, Threatening Jobs
Ineos Mothballs Three Hull Plants, Threatening Jobs
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Key Points
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Ineos said the Hull facilities are Europe’s “last remaining world-scale acetyls units,” underscoring their importance to the regional and European chemicals industry.
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The company had already reduced the workforce at one site by 20% last October, following a £30 million conversion intended to enable the plant to use hydrogen produced during carbon-monoxide generation.
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Ineos said up to 1,000 employees would be directly affected, including the 245 workers based at the plants; the wider impact was estimated at about 3,000 additional skilled jobs in Humberside.
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Recent market comparisons cited in the reports put European gas at roughly $26-$27 per million British thermal units, versus about $2.80-$2.90 at the US Henry Hub, illustrating the scale of the cost disadvantage.
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Ratcliffe said replacing Hull’s output with imports would worsen emissions, claiming products supplied from the United States would carry twice the carbon emissions and those from China eight times the emissions of the UK plants.
Ineos is shutting down its three chemical plants in Hull, with two already closed and the third expected to stop within days The Guardian. The mothballing directly threatens 245 onsite jobs and puts roughly 4,000 skilled positions across Humberside at risk. Chairman Sir Jim Ratcliffe blamed UK and European gas prices—about 12 times higher than in the United States—along with carbon costs that make the plants uncompetitive.
These Hull facilities produce acetyls and other raw materials used in pharmaceuticals, clothing, cosmetics, detergents, and explosives Ham & High. Ratcliffe warned that shifting production abroad could cost jobs and increase global emissions, since US-made products carry twice the carbon footprint and Chinese-made products eight times the carbon footprint of UK plants.
Europe's Last Acetyls Powerhouse Falls Silent
The three Hull plants represent Europe's last remaining world-scale acetyls units, according to Ineos The Guardian. These facilities are critical to the regional and European chemicals industry, producing foundational materials for dozens of consumer and industrial products. The shutdown marks a major loss for UK manufacturing and signals the vulnerability of energy-intensive industries in Britain.
Gas Prices Twelve Times Higher Than America
Ineos cited energy costs as the main reason for closure Largs and Millport News. European natural gas costs roughly $26 to $27 per million British thermal units, compared to $2.80 to $2.90 at the US Henry Hub. This massive price gap—combined with carbon costs—makes operating in the UK impossible for energy-intensive chemical makers.
Failed Hydrogen Conversion Effort Last October
Ineos had already reduced the workforce by 20% last October following a £30 million conversion that was meant to help one plant use hydrogen produced during carbon-monoxide generation Ayr Advertiser. That investment failed to save the facility from closure. The mothballing now affects up to 1,000 employees directly, with an additional 3,000 skilled jobs in the wider Humberside region at risk.
Ratcliffe Attacks UK Energy Policy
Ratcliffe criticized government and European energy policies, calling gas prices "ridiculous" The Guardian. He argued that replacing Hull's output with imports would worsen global emissions. Products from the United States would carry twice the carbon emissions of UK plants, he said, while goods from China would have eight times the carbon footprint. The billionaire industrialist warned that shifting production abroad harms both UK jobs and planetary health.
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