INEOS has decided to idle all three of its chemical plants in Hull in northern England after energy prices surged, according to a company statement. The plants are described as Europes last remaining world-scale acetyls units, producing raw materials used in pharmaceuticals, clothing and construction.
The company employs 245 workers at the site, with around 4,000 supply chain jobs affected. INEOS founder Jim Ratcliffe said gas prices in Europe are now 12 times the level in the US and eight times that of China, making competition impossible. He called on European regulators to recognize that high energy costs combined with carbon taxes are destroying the regions manufacturing base.
The decision comes as European chemical producers face a structural crisis marked by muted demand, global overcapacity and elevated power costs. The EUs Critical Chemicals Alliance is assessing which assets could qualify for state support after around 9% of European production capacity was earmarked to close between 2022 and 2025.
