Jim Ratcliffe halts production at Hull chemical plants over ‘ridiculous’ gas prices
News Source
•Tue, 22 Sep 2026 16:18:13 GMT
📰 What Happened
Sir Jim Ratcliffe's company Ineos is pausing production at three chemical plants in Hull. The firm says UK gas prices are too high to compete with plants in the US and China. Two sites have already stopped and the third is due to close in days. About 240 staff work at the three plants, and Ineos says it is mothballing them for now rather than shutting them for good.
🔍 The Backstory
Gas is a raw material for chemicals, not just a fuel. UK gas prices are high because the country leans on gas for heating and power while North Sea supplies fall. Ineos says UK gas costs 12 times more than in the US and eight times more than the coal used in China. The government points to a 350 million pound co-investment scheme and plans to cut manufacturers' electricity bills.
🎯 Why It Matters
A permanent closure could affect up to 4,000 jobs in Hull once supply chains are counted. It also raises the question of whether UK factories can survive high energy costs.
Sir Jim Ratcliffe's company Ineos is pausing production at three chemical plants in Hull. The firm says UK gas prices are too high to compete with plants in the US and China. Two sites have already stopped and the third is due to close in days. About 240 staff work at the three plants, and Ineos says it is mothballing them for now rather than shutting them for good.
Gas is a raw material for chemicals, not just a fuel. UK gas prices are high because the country leans on gas for heating and power while North Sea supplies fall. Ineos says UK gas costs 12 times more than in the US and eight times more than the coal used in China. The government points to a 350 million pound co-investment scheme and plans to cut manufacturers' electricity bills.
A permanent closure could affect up to 4,000 jobs in Hull once supply chains are counted. It also raises the question of whether UK factories can survive high energy costs.