Jim Ratcliffe slams Labour's energy policy as Ineos mothballs vital chemicals plants due to 'ridiculously high' UK gas prices

Billionaire industrialist Sir Jim Ratcliffe has halted production at three chemical plants in Hull, citing the "ridiculously high" gas prices in the UK. Ineos, Ratcliffe's chemicals conglomerate, is mothballing the plants due to the high costs that make them uncompetitive in the global market. The closure will directly affect about 240 people employed at the three Humberside sites. However, the potential job losses could rise to 4,000 when accounting for those in the supply chains of the affected plants.

Ratcliffe expressed disbelief at the company's decision to halt production at some of the "most efficient plants in Europe." He pointed out that gas prices in the UK are 12 times higher than in the US and eight times more expensive than the coal used in Chinese chemical plants. The soaring gas costs have been a significant challenge for Europe's chemicals industry, impacting companies like Ineos, which produces vital chemical building blocks for various products.

The UK's reliance on gas for heating and electricity generation, which has declined due to the depletion of North Sea reserves, has led to a greater dependence on imported gas. Ratcliffe criticized the UK government's energy policy, calling it "economic vandalism" that results in job losses to China and the US while increasing global CO2 emissions.

He claimed that the high gas prices are not only harming the UK's manufacturing base and workers on Humberside but also have a significant environmental impact, as replacement products from the US and China have double and eight times more carbon emissions, respectively.

In response to the situation, a government spokesperson highlighted the "bold action" taken by ministers to support the UK's chemicals industry. This includes a £350m co-investment scheme and trade measures to address high electricity costs. The government is also preparing to tackle high electricity costs through a pair of discount schemes for manufacturers.

The first scheme aims to reduce electricity bills by up to 25% for over 10,000 manufacturing businesses, while the "supercharger" scheme will cut electricity costs for hundreds of the UK's most electricity-intensive businesses by more than £400m annually.