Billionaire Sir Jim Ratcliffe is pausing operations at three chemical plants in Hull, citing high UK gas prices that make the facilities uncompetitive against US and Chinese rivals.

Ineos, the industrial group led by billionaire Sir Jim Ratcliffe, is mothballing three chemical plants in Hull due to the high cost of natural gas in the UK. The company stated that UK gas prices are 12 times higher than in the US and eight times more expensive than the coal-based processes used by Chinese competitors. Two of the plants have already ceased production, with the third scheduled to follow in the coming days.

Impact on Operations and Staff

The affected facilities produce essential chemicals, including acetic acid for paint and glue, acetic anhydride for aspirin, and ethyl acetate for solvents. While Ineos reports that 245 people are employed directly at the sites, the company estimates that up to 4,000 jobs in the local supply chain could be affected by a permanent closure. Ineos intends to keep staff on while it explores options, such as sourcing liquefied natural gas directly from the US or waiting for market prices to decrease.

Criticism of Energy Policy

Sir Jim Ratcliffe described the UK government's energy policy as "economic vandalism on an industrial scale," arguing that it forces the closure of efficient European plants while increasing global carbon emissions. He is calling for tariff protections against Chinese imports. A government spokesperson responded that ministers have supported the chemicals industry through a £350m co-investment scheme and trade measures.