Full Breakdown
Huntsman Corporation Faces Closure of UK Chemical Plant Amid Rising Energy Costs
3/16/2026, 7:49:07 PM
Impending Closure of the Wilton Plant
Peter Huntsman, CEO of Huntsman Corporation, has warned that the company may close its chemical plant in Wilton, Teesside, within three months if current energy prices persist. The facility, which employs approximately 80 workers and produces aniline—a chemical used in various products including car seats and aircraft components—has been significantly impacted by soaring gas prices attributed to the ongoing conflict in Iran. Huntsman described the situation as “another nail in the coffin” for British heavy industry, emphasizing that the UK plant has become the most expensive source of aniline globally, in stark contrast to its competitive pricing just four years ago.
Background on Huntsman Corporation
Huntsman Corporation, founded by Jon Huntsman in 1970, has evolved into a multinational chemicals powerhouse with operations across the globe. Peter Huntsman took over as CEO in 2000 and led the acquisition of Imperial Chemical Industries' (ICI) industrial chemicals division for £1.7 billion. However, the company has since reduced its UK presence to a single facility, reflecting a broader trend of decline in the UK chemicals sector, which has seen a 60% drop in production output since 2021 and at least 25 site closures.
Industry Challenges and Government Response
The chemical industry in the UK has faced severe challenges, with Huntsman attributing the current crisis to “self-inflicted” issues stemming from inadequate government energy policies. He criticized successive administrations for failing to lower industrial energy bills, which he believes has made UK industry less resilient. Huntsman stated, “Failed energy policy has made UK industry less resilient. A crisis like this should not impact the chemical industry like this.”
In December, Jim Ratcliffe, CEO of Ineos, echoed similar sentiments, describing the situation for European chemical plants as “unsurvivable” due to rising carbon costs and insufficient trade protections. Ineos received a £120 million government bailout to sustain its Grangemouth ethylene cracker, the last of its kind in the UK.
Official Statements & Responses
A government spokesperson acknowledged the difficulties faced by the chemicals industry, stating, “We know this is a tough time for our chemicals industry, who are paying the fossil fuel penalty.” The spokesperson emphasized the need to transition to clean, homegrown power to reduce energy costs sustainably.
Criticism & Opposition
Critics of the current energy policies argue that the government has not done enough to support the chemicals sector during this crisis. Huntsman expressed his reluctance to invest further in the UK, highlighting the lack of growth and incentives compared to his successful operations in China, the United States, and the Middle East.
Verbatim Quotes
- “If today’s economics were to stay in place for the next three months, I would shut down my [UK] facility and I’d be importing product from China or the United States,” — Peter Huntsman, CEO of Huntsman Corporation
- “Failed energy policy has made UK industry less resilient.” — Peter Huntsman, CEO of Huntsman Corporation
- “A Government spokesman said: “We know this is a tough time for our chemicals industry, who are paying the fossil fuel penalty.” — Government spokesperson
The future of Huntsman Corporation's UK operations remains uncertain as the company navigates the challenges posed by rising energy costs and a shifting global market.
