Ratcliffe shuts UK chemical plants, blames gas prices 12x higher than US
Ineos halts production at three Hull facilities affecting up to 1,000 workers as billionaire owner criticizes government energy policy.
What to know
- Ineos suspended production at three Hull chemical plants producing materials for pharmaceuticals, cosmetics, detergents, and military explosives, affecting up to 1,000 workers.
- Ratcliffe cited UK natural gas prices at 12 times the US level and 8 times China's coal-based equivalent as making operations uncompetitive, calling the situation 'economic vandalism.'
- The company plans to explore importing liquefied natural gas directly from the US (process taking up to a year) while seeking tariff protections against Chinese imports from UK and EU governments.
- Gas prices across the UK and Europe have nearly doubled since July following disruption to oil and gas supplies through the Strait of Hormuz linked to the US-Israel conflict with Iran.
UK commercial gas prices are genuinely uncompetitive and require attention to policy fundamentals, not just spotspot market comparisons.
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“You're responding to a post talking about how the commercial price of gas is making UK business uncompetitive, it's obviously going to be talking about the commercial price, not just necessarily in this singular case of INEOS or even a…”
SaltyW123 · Reddit ↗
Ratcliffe should pursue independent solutions like building LNG infrastructure rather than relying on media complaints and government support.
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“A solution would be to build his own LNG vessels/ports and get in the business of importing it himself, rather than buying it on the free market from other importers, where gas has spiked massively in recent days due to war. But of course…”
superioso · Reddit ↗
“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.”
Department for Business, Innovation, Science and Trade spokesperson, Government official · BBC News ↗
Sir Jim Ratcliffe Ineos owner and billionaire industrialistIneos Chemical manufacturing firmUK Department for Business, Innovation, Science and Trade Government oversight
How it unfolded 2 developments, newest first · click a bar or a number to jump articlespostscomments
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UK government responds with support package and trade measures
The Department for Business, Innovation, Science and Trade acknowledged the move as a 'concerning time' for workers and outlined existing support: £350 million for strategically important chemicals producers on a co-investment basis, trade measures against foreign chemical imports, and electricity cost relief through the Supercharger and British Industrial Competitiveness Scheme.
“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.”
— Department for Business, Innovation, Science and Trade spokesperson -
Are we not talking about the commercial price of gas? Talking about the wholesale price is neither here nor there as it doesn't take into account any tax lol. You're responding to a post talking about how the commercial price of gas is making UK business uncompetitive, it's obviously going to be talking about the commercial price, not just…
1 more of the top 2 · 2 posts in this stretch
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A solution would be to build his own LNG vessels/ports and get in the business of importing it himself, rather than buying it on the free market from other importers, where gas has spiked massively in recent days due to war. But of course it's easier to just complain to the media than do anything else.
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background
Ratcliffe attacks government energy policy as 'economic vandalism' — Ratcliffe characterized the current government's energy policy as 'economic vandalism on an industrial scale.' This marks the second major criticism of UK government policy from the billionaire in less than a week, following earlier remarks about the country being 'on the slide.'
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background
Production halts affect up to 1,000 workers; some plants already closed — Two of the three plants are already shut down, with the third to cease production in coming days. Up to 1,000 employees are affected, including 245 directly at the site. Workers will be retained during the suspension while Ineos explores importing liquefied natural gas from the US, a process that could take up to a year.
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Ineos suspends production at three Hull plants over gas costs
Sir Jim Ratcliffe's chemical manufacturing firm Ineos announced the mothballing of three facilities in Humberside that produce acetic acid, acetic anhydride, and ethyl acetate—raw materials used in pharmaceuticals, cosmetics, detergents, and military explosives. The company cited UK natural gas prices at twelve times the US level and eight times Chinese equivalents as the driver.
“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.”
— Sir Jim Ratcliffe -
first by The Times, 1d ago · also Guardian, BBC
2 more headlines
- Jim Ratcliffe halts production at Hull chemical plants over ‘ridiculous’ gas prices The Guardian · 1d ago
- Sir Jim Ratcliffe suspends production at key UK plants blaming high gas prices Mastodon · 10h ago
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