Full Breakdown
Ineos Cuts Jobs at Hull Plant Amid Rising Energy Costs and Chinese Competition
10/7/2025, 10:07:43 PM
Job Cuts and Economic Pressures
Ineos, the chemicals company founded by billionaire Sir Jim Ratcliffe, has announced the reduction of 60 jobs at its Acetyls plant in Hull, East Yorkshire, representing approximately 20% of the workforce. The company attributes these cuts to "sky-high" energy costs and "dirt-cheap" imports from China, which it claims are flooding the UK and European markets. The Hull facility is Europe's largest producer of acetic acid, acetic anhydride, and ethyl acetate, essential chemicals used in various products, including pharmaceuticals and food preservatives.
Factors Behind the Decision
Ineos has cited several factors contributing to the job losses. Rising energy costs, exacerbated by green levies, have made operations increasingly uncompetitive. Additionally, the company highlights that Chinese competitors, which produce goods using coal and emit significantly more carbon dioxide, face no tariffs in the UK or Europe, unlike their American counterparts. Ineos has called for the UK government and the European Commission to impose trade tariffs on Chinese imports to protect local manufacturing.
David Brooks, chief executive of Ineos Acetyls, stated, "This is a textbook case of the UK and Europe sleepwalking into deindustrialisation." He emphasized that without government intervention, further job losses across the chemicals sector are likely.
Broader Implications for the Industry
The job cuts in Hull are part of a larger trend affecting Ineos's operations across Europe. The company has recently closed its Grangemouth oil refinery in Scotland, resulting in 400 job losses, and shut down two plants in Germany, affecting 175 positions. Ineos warns that without stronger trade protections, the UK risks losing more high-value manufacturing capacity, which could lead to thousands of additional job losses.
Official Responses
In response to Ineos's announcement, a government spokesperson acknowledged the challenges facing the chemicals industry, noting that wholesale gas costs remain significantly higher than pre-Ukraine invasion levels. The spokesperson highlighted the government's efforts to reduce electricity costs for the chemicals sector and mentioned the Trade Remedies Authority's ability to investigate the impact of cheap imports.
Criticism and Opposition
Critics of the current trade and energy policies argue that the lack of protective measures for the UK chemicals industry is contributing to its decline. Ineos has urged immediate action from the government to address these issues, warning that failure to do so could result in irreversible damage to the sector.
Verbatim Quotes
- “Brooks said: “This is a textbook case of the UK and Europe sleepwalking into deindustrialisation.” — David Brooks, Chief Executive of Ineos Acetyls
- “If governments don’t act now on energy, carbon and trade, we will keep losing factories, skills and jobs. And once these plants shut, they never come back.” — David Brooks, Chief Executive of Ineos Acetyls
Ineos remains committed to investing in UK manufacturing but emphasizes the urgent need for government action to create a more competitive environment for local producers.
