Billionaire Sir Jim Ratcliffe's industrial conglomerate Ineos has suspended operations at three major chemical manufacturing facilities in Hull, citing energy costs that far exceed those faced by international competitors. The company confirmed on 22 September 2026 that the pause affects up to 4,000 jobs—1,000 directly employed and a further 3,000 across the supply chain.
According to , the three plants represent Europe's last remaining world-scale acetyls units, making their suspension a significant blow to continental chemical manufacturing capacity. The facilities produce raw materials essential for pharmaceuticals, textiles, cosmetics, detergents, construction materials and military explosives distributed across the UK and Europe. Gas serves as both a fuel and a chemical ingredient in the production process.
Ineos management attributed the decision to a severe cost disadvantage.
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 company noted that wholesale natural gas prices in the UK have nearly doubled since July, driven primarily by reductions in global oil and gas supplies.
This decision follows broader challenges facing Britain's chemical sector. Earlier this year, another major chemical manufacturer warned that UK plants could close if energy prices remained elevated for three months, highlighting systemic pressures on the industry. The government subsequently announced plans to invest £100m to reopen a CO2 production facility in Teesside to address supply concerns.
Which plants are affected and what do they produce?
Two of the three Hull plants have already ceased production, with the third expected to stop in the coming days, according to TheBusinessDesk. One facility manufactures acetic acid, a compound used in vinegar, paint and adhesives. A second produces acetic anhydride, a critical ingredient in aspirin production. The third generates ethyl acetate, employed in solvents and the decaffeination of tea and coffee.
Ineos maintains that these Humberside operations rank among the world's most efficient, producing materials with half the carbon footprint of US competitors and one-eighth that of Chinese equivalents. The company had recently invested in emissions reduction at the site; a hydrogen conversion project completed on 4 September 2026 was designed to cut emissions by 75 percent, demonstrating the company's commitment to the facility before the suspension announcement.
What is Ineos's strategy to restart production?
Ineos is pursuing liquefied natural gas (LNG) sourced directly from the United States at substantially lower prices, though the company estimates this arrangement will require up to a year to establish. In the interim, workers at all three sites will remain employed while the company awaits either the arrival of cheaper US gas supplies or a decline in UK energy prices.
The company is simultaneously lobbying the UK and EU governments for tariff protections against Chinese chemical products, arguing that without such measures, European manufacturers cannot compete against competitors benefiting from lower energy costs and less stringent environmental standards.
What has Ratcliffe said about government policy?
Sir Jim has launched sharp criticism of current government energy strategy. He characterised the situation as
economic vandalism on an industrial scale, reflecting his broader frustration with UK policy. This marks the second major public rebuke of government in less than a week; he previously told media outlets that he has lost confidence in the country, describing it as
on the slideand attributing the decline to high taxation and immigration levels.
His comments have drawn political response. Labour's chair has argued that Ratcliffe undermines his credibility by criticising the UK from his Monaco tax residence. Sir Jim, whose estimated wealth stands at approximately £15 billion, has been a tax resident in Monaco since 2020, despite owning a substantial stake in Manchester United and maintaining significant business interests in Britain. He was a Brexit supporter but has faced ongoing controversy over his immigration commentary.
Key Facts
- Ineos suspended operations at three Hull chemical plants on 22 September 2026, affecting 1,000 direct jobs and 3,000 supply chain positions
- UK gas prices are 12 times higher than in the United States and 8 times more expensive than coal-based processes used by Chinese manufacturers
- The three facilities are Europe's last remaining world-scale acetyls production units, producing materials for pharmaceuticals, textiles, cosmetics and other industries
- The company is negotiating to source liquefied natural gas from the US, a process expected to take up to one year
- Workers will remain employed during the suspension while Ineos awaits either cheaper US gas supplies or a reduction in UK energy prices
