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

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

Sir Jim Ratcliffe said Ineos was being 'forced' to pause production at three sites

Billionaire Sir Jim Ratcliffe's industrial group Ineos is suspending production at its three Hull sites, citing high UK gas prices.

Ineos has confirmed that up to 4,000 jobs are affected — 1,000 directly and another 3,000 in the supply chain.

The company said gas prices in the UK are twelve times higher than in the US, and eight times more expensive than the coal-based processes used by Chinese competitors.

Sir Jim said: "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 make raw materials used in pharmaceuticals, clothing, cosmetics, detergents, construction materials and military explosives in the UK and Europe. Gas is used as an ingredient in the production process.

BBC News understands that Ineos is seeking to secure liquefied natural gas (LNG) directly from the US at lower prices, but that could take up to a year.

Staff across the sites will be retained while Ineos waits for that to happen, or for gas prices to fall.

Ineos is urging governments in the UK and the EU — where most of its products are exported — to introduce tariff protections against Chinese goods.

One plant produces acetic acid, which is used in vinegar, paint and glue. Another makes acetic anhydride, a key ingredient of aspirin, and the third produces ethyl acetate, which is used in solvents and decaffeinating tea and coffee.

He said the current government's energy policy was "economic vandalism on an industrial scale".

Ineos says its Humberside plants are "among the most efficient in the world", making materials with half the carbon footprint of US rivals, and only one eighth the footprint of Chinese equivalents.

Two plants are already closed and a third will halt production in the coming days, the company said. It did not immediately say when the plants might restart, or what conditions would allow that.

It is the second time in less than a week that Sir Jim, who also owns a large stake in Manchester United, has sharply criticised government policy.

He told BBC News last week that he has lost confidence in the UK, saying the country was "on the slide", which he blamed on high taxes and high immigration.

Sir Jim, whose wealth is estimated at around £15bn, has previously caused controversy with his comments on immigration. He supported Brexit but has been a tax resident in Monaco since 2020.