HULL — In a devastating blow to the European manufacturing sector, INEOS has announced the immediate mothballing of its three world-scale chemical intermediate plants in Hull. The facilities, which serve as the final remaining Acetyls production units on the continent, are being shuttered indefinitely due to insurmountable energy costs.
Two of the plants have already ceased operations, with the third scheduled to go offline within days. The decision marks a significant decline in Europe’s industrial autonomy, as the Hull site has long served as a vital supplier of chemical building blocks for essential industries, ranging from pharmaceuticals and food production to cosmetics, construction materials, and specialized military explosives.
The primary driver of the closure is the staggering disparity in global energy prices. European natural gas costs have surged to 12 times the levels seen in the United States and eight times those found in China. Despite significant capital investment by INEOS to make the Hull site among the most efficient in the world, the company stated that it is no longer possible to remain competitive against cheaper international imports.
Sir Jim Ratcliffe, Chairman of INEOS, expressed profound frustration over the decision, labeling it a direct consequence of failing economic policies. “I’m sure people will find it hard to believe that we are being forced to mothball some of the most efficient plants in Europe,” Ratcliffe said in a statement. “But with gas prices now 12 times the level in the U.S. and eight times that of China, we just cannot compete.”
Beyond the loss of jobs for the Humberside workforce, Ratcliffe highlighted the perverse environmental consequences of the closures. Because the Hull units are highly optimized, they operate with a carbon footprint significantly lower than international competitors—producing material with half the carbon intensity of U.S.-made products and one-eighth that of Chinese equivalents.
“Not only is the ridiculously high gas price destroying our manufacturing base, it is also massively increasing the environmental burden,” Ratcliffe added. “Replacement products supplied from the USA come with double the carbon emissions, and from China at eight times the level.”
Ratcliffe pointedly criticized European regulators, arguing that the combination of exorbitant energy prices and the additional weight of “unsustainable” carbon taxes is effectively dismantling Europe’s industrial foundation. He warned that current policies are forcing the wholesale export of jobs to Asia and North America while simultaneously undermining global climate goals by shifting production to more carbon-intensive regions.
The closure of the Hull units signifies a major shift in the European energy landscape, leaving the continent increasingly reliant on foreign supply chains for the foundational materials required for modern life. As the units power down, the focus now turns to the impact on the local workforce and the broader economic stability of the region.
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