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

Billionaire Sir Jim Ratcliffe’s Ineos is preparing to idle three major chemical sites in Hull after warning that UK natural‑gas prices have rendered the facilities uncompetitive. The company said up to 4,000 jobs are affected—1,000 directly and another 3,000 in the supply chain. Ineos explained that gas prices in the United Kingdom are 12 times higher than in the United States and eight times more expensive than the coal‑based processes used by Chinese rivals. Sir Jim Ratcliffe declared, “We are being forced to mothball immoderate of the astir businesslike plants in Europe, but with gas prices present 12 times the level in the US and 8 times that of China, we simply cannot compete.” The Hull plants produce raw materials for pharmaceuticals, clothing, cosmetics, detergents, operational materials and explosives used across the UK and Europe, with gas serving as a feedstock in the manufacturing process. BBC News understands that Ineos is seeking to secure liquefied natural gas (LNG) directly from the United States at lower cost, although obtaining that supply could take as long as a year. In the meantime, workers at the sites will remain employed while the company waits for the LNG arrangement or for gas prices to fall. Ineos is urging the UK and EU governments—markets that receive the majority of its exports—to introduce tariff protections against Chinese products. One facility manufactures acetic acid, used in vinegar, overgarments and glue; a second makes acetic anhydride, a key ingredient of aspirin; and the third produces ethyl acetate, employed in solvents and the decaffeination of beverages and coffee. Ratcliffe also criticised the current administration’s energy policy, calling it “economic vandalism on an concern scale.” He noted that wholesale natural‑gas prices—used for heating homes and generating power—have almost doubled in the UK and Europe since July. Analysts added that the main operator has been a simplification in global lipid and gas supplies. Ineos maintains that its Humberside plants are “among the most businesslike in the world,” delivering products with half the carbon footprint of US rivals and only one‑eighth that of Chinese competitors. Two of the three sites are already closed, and the third will cease production in the coming days. The company did not specify when operations might resume or what conditions would make a restart feasible. This marks the second occasion in less than a week that Sir Jim, who also holds a substantial stake in Manchester United, has publicly criticised government policy. Last week he told BBC News he has lost confidence in the UK, describing the state as “on the slide,” which he attributed to high taxes and high immigration. Sir Jim’s fortune is estimated at roughly £15 bn. His past remarks on immigration have sparked controversy; although he backed Brexit, he has been a tax non‑resident in Monaco since 2020. The Department for Business, Innovation, Science and Trade has been approached for comment.