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Ineos Suspends Production at Three Hull Plants Citing Sky-High Gas Prices
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Ineos Halts Production at Hull Plants Over Gas Prices
Billionaire Sir Jim Ratcliffe’s chemicals group Ineos announced that it is pausing output at three Humberside facilities that manufacture raw materials for pharmaceuticals, clothing, cosmetics, detergents, construction products and military explosives. The shutdown will affect up to 1,000 staff, including 245 workers directly at the sites, while the company seeks to import liquefied natural gas from the United States or wait for prices to fall.
Background: Energy Costs and Industry Context
The UK and European natural-gas wholesale price has nearly doubled since July, driven in part by disruptions to oil and gas supplies through the Strait of Hormuz after the US-Israel conflict in Iran. Ineos argues that the high cost makes its gas-intensive processes uncompetitive against coal-based Chinese rivals and cheaper US producers. The move follows a wave of UK manufacturing closures since early last year, including Sabic’s Teesside chemicals plant and Associated British Foods’ Yorkshire bio-ethanol facility.
Official Statements & Responses
“We've taken bold action to support our chemicals industry including £350 million for strategically important chemicals producers, which will be available on a co-investment basis.” — spokesperson
Conflicting Reports & Gaps
BBC reporting cites “up to 1,000” staff affected, with 245 on-site employees, whereas City AM estimates the three plants support nearly 4,000 highly skilled jobs in Humberside. The sources do not reconcile this discrepancy, and neither provides a definitive breakdown of indirect employment.
Verbatim Quotes
- “We've taken bold action to support our chemicals industry including £350 million for strategically important chemicals producers, which will be available on a co-investment basis.” — spokesperson