Billionaire industrialist Sir Jim Ratcliffe is pausing production at three chemical plants in Hull, with his conglomerate Ineos blaming the UK's high gas prices for making the sites uncompetitive on the global market.
Key facts
- Ineos is mothballing three chemical plants in Hull.
- Sir Jim Ratcliffe blamed the UK's 'ridiculously high' gas prices.
- Ineos said UK natural gas is twelve times more expensive than in the US.
- The company said it 'cannot compete' with the global market despite the efficiency of its Humberside sites.
Sir Jim Ratcliffe, the billionaire owner of the chemicals conglomerate Ineos, is suspending production at three chemical plants in Hull, blaming the UK’s high gas prices, according to reporting by the BBC and the Guardian.
Ineos said on Tuesday it would ‘mothball’ the three plants because the cost of natural gas made it difficult to compete in the global market. Ratcliffe described the UK’s gas prices as ‘ridiculously high’, according to the Guardian.
The company said natural gas in the UK is twelve times more expensive than in the United States, according to the BBC. Ineos pointed to this disparity as a key reason it could not remain competitive.
Despite the efficiency of its Humberside sites, Ineos said it ‘cannot compete’ with the global market, the Guardian reported. The decision to pause production reflects the pressure that energy costs are placing on the company’s UK operations.
The move highlights ongoing concerns about the cost of doing business in the UK’s energy-intensive industries, where gas prices remain a central factor in operational decisions.
Why it matters
The decision by one of the UK's largest industrial players to pause production over energy costs signals wider pressures facing energy-intensive manufacturing in Britain. The stark gap between UK and US gas prices raises questions about the competitiveness of domestic industry and the potential impact on jobs and the wider economy.
Frequently asked questions
Why is Ineos pausing production at its Hull plants?
Ineos said the cost of natural gas made it difficult to compete in the global market, with Sir Jim Ratcliffe describing the UK's gas prices as 'ridiculously high'.
How much more expensive is UK gas compared to the US?
Ineos said natural gas in the UK is twelve times more expensive than in the US, according to the BBC.
How many plants are affected?
Ineos said it would mothball three chemical plants in Hull.