Ineos Pauses UK Chemical Plant Operations Amid High Gas Prices, Tycoon Blames Labour Policy

Ineos, the industrial empire founded by billionaire Jim Ratcliffe, has announced the mothballing of three vital chemical plants in Hull, England, citing "ridiculously high" gas prices. Ratcliffe has sharply criticized Labour's energy policy, calling it "economic vandalism on an industrial scale" and warning that the situation could affect up to 4,000 jobs across the affected sites and their wider supply chains.

The affected plants produce essential raw materials for various European industries, including pharmaceuticals, textiles, cosmetics, detergents, building materials, and military explosives. Ratcliffe stated that the UK's gas prices, which he claims are 12 times higher than in the US and eight times higher than in China, make it impossible to compete.

He further argued that relying on replacement products from countries with higher carbon footprints, such as the US and China, negates any environmental benefits of idling the more efficient UK plants. "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," Ratcliffe said.

Gas is a critical component for the factories, serving as both an energy source and a feedstock in the chemical production process. Two of the plants have already ceased operations, with the third scheduled to go offline shortly. Ineos indicated that operations could resume if the company secures cheaper liquefied natural gas (LNG) directly from the US or if UK gas prices decrease.

This move follows a previous round of job cuts at the Hull site last October, when Ineos cited competition from "dirt-cheap carbon-heavy" imports from China. Reform deputy leader Richard Tice echoed Ratcliffe's concerns, calling the plant closures a "devastating indictment of the failed energy policies that have left British industry on its knees."

Ratcliffe has been vocal about his dissatisfaction with the UK's direction, recently expressing a loss of confidence in the country and attributing its perceived decline to Labour's approach to welfare, immigration, and high taxation. He has also described the lack of further investment in North Sea oil and gas as "insanity."

Earlier in September, Ineos chairman Brian Gilvary had warned that years of policy instability regarding the North Sea industry had led to a decline in investment. Concurrently, a North Sea business task force reported that 25,000 jobs in the sector have been lost since Labour assumed power, advocating for the repeal of the windfall tax on oil and gas firms.