Jim Ratcliffe Halts Production at Chemical Plants in Hull

British industrialist Sir Jim Ratcliffe has decided to halt production at three chemical plants in Hull. This decision was made due to the "excessively high" gas prices in the United Kingdom. Ratcliffe's company, Ineos, stated that the costs of these plants make it difficult to compete in the global market. The company announced that production at two of the plants has already stopped and the third will be closed within a few days.

Approximately 240 people are employed at the three plants. If the plants close permanently, it will affect 4,000 workers in the Humberside region. Ratcliffe expressed that it is hard to believe that some of Europe’s most efficient plants have to be halted, saying, "We cannot compete." He also noted that gas prices in the UK are 12 times higher than those in the US and eight times higher than coal prices in China.

Rising gas costs in recent years have negatively impacted Europe’s chemical industry. Gas is used as a critical nutrient in the production of chemical building blocks necessary for products like textiles, pharmaceuticals, and detergents. The UK is more dependent on gas for heating and electricity generation, leading to higher gas prices compared to other European countries. Historically, the country's North Sea reserves were used to meet this demand, but as production has declined, the UK has become more reliant on imports.

Ratcliffe argued that the government's energy policy has created "economic vandalism on an industrial scale." He stated that this situation leads to job losses and environmental issues. Government officials, however, expressed that they are taking bold steps to support the chemical industry and that various measures are being prepared to reduce high electricity costs. It is reported that Ineos's commercial decision has raised concerns among workers and their families in Humberside.