The government frames Ineos’ decision as commercial but points to sector support, including a 350 million co-investment fund and measures to reduce electricity costs via schemes like the Supercharger and the British Industrial Competitiveness Scheme.

Ineos has paused production at its three Hull plants due to high UK gas prices, impacting about 1,000 direct employees at Saltend Chemicals Park and potentially up to 3,000 more in the supply chain.

Founder and chairman Sir Jim Ratcliffe says UK gas prices are roughly eight times higher than China and twelve times higher than the US, making UK competitiveness untenable for the company.

The move comes amid broader European pressure on industry from energy crises and geopolitics, with competition from China and the US exacerbating costs.

The plants provide essential feedstocks for a wide range of products, from medicines to textiles and construction materials, and halting them risks a broad industrial ripple.

The situation underscores Europe’s chemicals industry pressure from elevated gas costs, given gas is a key input for manufacturing chemicals used across multiple sectors.

Two Hull plants have already ceased production, with the third expected to pause soon; there are no redundancies planned and workers will stay employed during the mothballing period.

The Hull plants manufacture acetic acid, acetic anhydride, and ethyl acetate, chemicals used in cleaners, packaging, pharmaceuticals, textiles, paints, and food preservation, produced with gas serving as both energy and feedstock.

Directly about 240 people are employed across the Hull sites, with up to 4,000 additional jobs in the supply chain potentially affected if permanent closures occur.

Energy minister urged Ratcliffe to work with the government on reindustrialisation and to safeguard jobs, reiterating ongoing support for the chemicals sector.

Officials highlighted actions to protect the chemicals sector, such as import controls on foreign chemicals and discounts that aim to cut electricity bills for manufacturers, benefiting energy-intensive operations.

Ineos supporters frame the issue as a threat to the UK chemical industry’s competitiveness, calling for policy action to stabilize energy prices and maintain industrial activity.