Billionaire owner Sir Jim Ratcliffe blamed higher UK gas prices for ‘destroying’ its manufacturing base.
Ineos is pausing production at its three plants in Hull, with billionaire owner Sir Jim Ratcliffe blaming higher UK gas prices for “destroying” its manufacturing base.
The chemical plants produce raw materials used in products like pharmaceuticals, clothing and cosmetics, construction and military explosives.
It is understood that around 1,000 employees will be directly affected by the move, of which 245 work at the sites.
Ineos said there could be a knock-on impact to a further 3,000 skilled jobs in Humberside.
Sir Jim, its founder and chairman, said Ineos was “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 eight times that of China, we just cannot compete”.
He blamed “ridiculously high” prices for “destroying our manufacturing base and the jobs of hard-working people on Humberside”.
The chemicals plants use gas for energy and to power the production process.
Ineos said two plants had already ceased production and the third would be paused in the next few days.
UK natural gas prices have roughly doubled between July and September, recently reaching the highest level since December 2022.
This has largely been driven by the US-Israel’s war in Iran and disruption to oil and gas supplies through the Strait of Hormuz.
