Billionaire tycoon Jim Ratcliffe has mothballed three vital Ineos chemical plants in Hull, blaming ridiculously high UK gas prices for forcing the facilities offline.
The industrial group warned that as many as 4,000 jobs across the sites in East Yorkshire and the wider supply chain could be affected if they close down permanently. Ineos directly employs 245 people at the Hull plants, who are expected to be kept on for the time being as the facilities are idled.
Two of the plants have already ceased production, with the third due to come offline in the coming days. The factories produce raw materials exported across Europe for goods including pharmaceuticals, clothes, cosmetics, detergents, building materials and military explosives.
Ratcliffe accused the Labour government of economic vandalism on an industrial scale, stating that UK gas prices have reached 12 times the level in the United States and eight times that of China. He warned that the price disparity has left British manufacturing unable to compete globally.
"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. He pointed out that replacement products imported from the US carry twice the carbon footprint of those made at the Hull plants, while imports from China have eight times the carbon burden.
"Not only is the ridiculously high gas price in the UK destroying our manufacturing base and the jobs of hard-working people on Humberside, it is also massively increasing the environmental burden," Ratcliffe said.
He added: "The UK government's energy policy is leading to economic vandalism on an industrial scale, exporting jobs to China and the United States and driving up global CO2 emissions at a stroke."
Job Risks and Industrial Impact
Gas is critical to operations at the Hull industrial complex, where it is utilized both as an energy source to power the facilities and as a key chemical ingredient in manufacturing processes.
The site has faced mounting pressure from foreign competition in recent months. Last October, Ineos cut 60 jobs at the Hull plant, citing market flooding from dirt-cheap, carbon-heavy imports coming from China.
Operations could potentially restart if UK gas prices fall or if Ineos buys cheaper liquefied natural gas directly from the United States. In the meantime, workers remain employed while the facilities are idled.
Ineos is a major British multinational chemicals company founded by Ratcliffe, operating manufacturing networks across the world. Chemical manufacturing in Hull and the broader Humber region has historically formed a key pillar of northern England's industrial economy, supplying foundational materials for European supply chains.
Energy Market Drivers and Political Backlash
Energy costs across the United Kingdom have escalated dramatically in recent months. British gas prices have been soaring alongside oil following Donald Trump's Iran war, which choked off energy supplies from the Middle East.
However, critics of the government argue that domestic policy choices have exacerbated the crisis. They point to Labour's opposition to new North Sea drilling and continued windfall taxes on UK oil and gas operators as key factors hobbling domestic energy production and leaving Britain reliant on volatile overseas imports.
Opposition politicians have strongly criticized the government following the announcement. Reform UK deputy leader Richard Tice called the plant closures a devastating indictment of failed energy policies that have left British industry on its knees.
"If we want high-skilled manufacturing jobs to stay in Hull and across the UK, we must stop driving our industries overseas and start making British energy cheap, secure and competitive once again," Tice said.
Wider Business Backlash and North Sea Industry
Ratcliffe's latest comments represent a further escalation in his criticism of the Labour administration, coming just days after he declared he had lost confidence in the UK and said the country was on the slide.
The businessman, who is best known as a major backer of Manchester United football club, warned that Britain's economic decline stems from a failure to tackle welfare and immigration, while also criticizing the country's high tax burden.
Speaking to the BBC, Ratcliffe added that failing to invest further in North Sea oil and gas resources amounted to insanity.
Industry figures across the sector have echoed similar concerns regarding government energy policy. Earlier this month, Ineos chairman Brian Gilvary warned that years of policy instability surrounding the energy sector had caused capital investment to dry up.
Separately this week, a North Sea business task force urged ministers to scrap the windfall tax on oil and gas companies, revealing that 25,000 jobs in the energy industry have been lost since Labour came to power.
