Sir Jim Ratcliffe's Ineos to mothball three major chemical sites in Hull

Billionaire Sir Jim Ratcliffe's industrial conglomerate, Ineos, has suspended operations at three major chemical plants in Hull, citing the exorbitant cost of UK gas. Ineos claims the UK gas prices are 12 times higher than those in the US and 8 times more expensive than the coal-based methods employed by Chinese competitors. The CEO, Sir Jim, remarked, "We are being forced to mothball some of the most efficient plants in Europe, but with gas prices now 12 times the level in the US and 8 times that of China, we just cannot compete."

The plants in question are crucial for manufacturing raw materials used in a wide array of products including pharmaceuticals, clothing, cosmetics, detergents, construction materials, and military explosives across the UK and Europe. Gas is a fundamental component in this production process. The decision to halt operations will impact approximately 1,000 employees, with 245 working directly at the sites.

However, it's understood that workers across the sites will remain employed while Ineos seeks to purchase liquefied natural gas (LNG) directly from the US at reduced prices. This process may take up to a year or they may wait for gas prices to decrease.

The billionaire, also the owner of Manchester United, has lost faith in the UK government's energy policies, describing them as "economic vandalism on an industrial scale." Ineos is urging the UK and EU governments to implement tariff protections against Chinese products to level the playing field. The company operates three plants: one produces acetic acid for vinegar, paint, and glue; another manufactures acetic anhydride, a key ingredient in aspirin; and the third generates ethyl acetate, used as a solvent and for decaffeinating tea and coffee.

Critiquing the current government's energy policies, Sir Jim stated, "The current government's energy policy is economic vandalism on an industrial scale." The price of natural gas, essential for heating homes and generating electricity, has nearly doubled in the UK and Europe since July. This price surge has been exacerbated by the disruption of oil and gas supplies through the Strait of Hormuz due to the US-Israel war in Iran, which has driven up global prices.

This marks the second time in a week that Sir Jim has harshly criticized government policies. Just the previous day, he expressed his loss of confidence in the UK, describing the country as "on the slide," attributing this to high taxes and high immigration. Wealthy and influential, Sir Jim's net worth is estimated at £15 billion. Despite his support for Brexit, he has been a tax resident in Monaco since 2020. The Department for Business, Innovation, Science, and Trade has been asked for a statement regarding the matter.