INEOS mothballs three Hull chemical sites, blaming high UK gas prices
INEOS has paused production at three Hull chemical sites, blaming high UK gas prices, with around 1,000 workers affected and up to 3,000 more supply-chain jobs at risk.
The Full Story
A plain summary built from the channels that reported this story.
INEOS has mothballed production at three chemical sites in Hull, saying high UK gas prices make the plants uncompetitive. The company is owned by Sir Jim Ratcliffe, the billionaire who also co-owns Manchester United. The move affects up to 1,000 workers, while the company says another 3,000 jobs in the wider supply chain could be at risk.
INEOS says the 245 people it employs directly at the Hull site will continue to be paid during what it describes as an open-ended shutdown. The sites make raw materials used in everyday products, including pharmaceuticals, cosmetics, clothing and construction. One key product is industrial acetic acid, which is used in everything from aspirin to solvents and paints.
Sir Jim Ratcliffe blamed the UK's energy costs and carbon taxes. He said the plants are among the most efficient in Europe but cannot compete with rivals in the United States and China, where gas is much cheaper. He claimed UK gas prices are 12 times higher than in the US and eight times higher than in China. His company called the government's energy policy economic vandalism on an industrial scale, and said it exports jobs to China and the US while driving up global CO2 emissions.
The government described the decision as commercial and pointed to a £350 million fund for companies that produce critical chemicals. Ministers acknowledged it would be a worrying time for workers and their families. Sir Jim disputed the government's position, saying it was hard to believe that more support was not available.
The announcement came as UK gas prices remain high. One report said UK gas is now two and a half times more expensive than in February, largely because of the war on Iran. The timing also put the issue into a political row, as the prime minister was meeting Donald Trump and energy costs and the Iran conflict were on the agenda.
Ratcliffe's intervention drew a political backlash. A government minister criticised him as a tax exile, noting he is based in Monaco and does not pay UK tax. Supporters of the chemical industry said the closure was part of a longer decline. An industry expert said 25 heavy chemical plants have closed in the UK over the past five years, with the value of chemical manufacturing output down by a third and actual output down by 60 per cent. Critics blamed net zero policies and a failure to exploit domestic oil and gas reserves.
The wider debate quickly moved to energy security. Some politicians said the UK should approve new gas fields such as Jackdaw and Rosebank and drill for gas to ease costs. Others said this would make little difference to prices and jobs, pointing to official figures suggesting Jackdaw would employ 27 people directly, while renewable and green industries already support hundreds of thousands of jobs. The argument reflects the pressure on the government to protect industrial jobs while meeting climate targets.
INEOS has not said when production might restart. Workers directly employed by the company will be paid during the shutdown, but the longer-term future of the Hull sites and their supply chain remains uncertain.
On screen
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Key Claims
Claims reported during this story's coverage, mapped by channel. Ordered by how many channels carried each claim.
| Claim | BBC One | BBC Two | GB News | ITV |
|---|---|---|---|---|
| INEOS is mothballing three major chemical sites in Hull and cites rising gas prices as the reason. | ||||
| The government described the move as a commercial decision and pointed to measures for essential chemicals, while Sir Jim Ratcliffe expressed scepticism about that account. | · | |||
| Up to 1,000 staff are affected and will continue to be paid, while 3,000 further jobs are at risk in associated industries. | · | |||
| Ratcliffe said the plants were among Europe's most efficient but UK gas prices were 12 times US levels and eight times China's; ITV reported prices were two and a half times higher than in February, largely due to the war on Iran, and could not verify his comparisons. | · | · | ||
| The government described the INEOS decision as commercial and cited a £350 million support fund for critical chemical producers. | · | · | ||
| A cabinet minister criticised Jim Ratcliffe as a tax exile. | · | · | · | |
| A Labour MP said Sir Jim Ratcliffe's Monaco residency and non-payment of UK taxes made constituents sceptical of his criticism. | · | · | · | |
| GB News claimed net zero policy prevents the UK from benefiting when fossil fuel prices fall, harming industry. | · | · | · | |
| Ratcliffe accused the government of large-scale economic damage to industry. | · | · | · | |
| Ratcliffe said high prices and carbon taxes were damaging the UK manufacturing base. | · | · | · | |
| Twenty-five heavy chemical plants have closed in the UK over the last five years. | · | · | · | |
| UK gas prices were reported to be two and a half times higher than in February, largely due to the war on Iran. | · | · | · |
Channel Perspectives
What each channel focused on, with key quotes.
The lunchtime BBC bulletin led with the basic announcement and quickly moved to jobs, products and the government's response. It framed the story around Ratcliffe's claim that the plants are efficient but cannot compete on gas prices, and noted the political timing of a meeting with Donald Trump and the Iran war.
- “INEOS, owned by the billionaire Sir Jim Ratcliffe, says it's mothballing three of its major chemical sites in Hull, blaming rising gas prices.”
- “gas prices are now 12 times higher than in the United States, and eight times that of China, meaning that they simply can't compete.”
- “1,000 jobs are affected, although he said that those employees will continue to be paid, though there are another 3,000 jobs at risk in associated industries.”
The evening BBC report treated the move as a pause in production and stressed the uncertainty for about 1,000 workers and 3,000 supply-chain roles. It gave prominence to Ratcliffe's economic vandalism attack on government energy policy and to the £350 million support fund, while tying the timing to the prime minister's meeting with Donald Trump.
- “The boss of the petrochemical giant INEOS says production has been paused at three of its chemical plants in Hull because of the high price of gas in the UK.”
- “He calls the government's policy on energy economic vandalism on an industrial scale.”
- “they point to a £350 million fund that's available for companies that produce what they say are critical chemicals.”
ITV's evening bulletin sent a correspondent to Hull and put precise numbers on the shutdown: 245 direct staff paid during an open-ended pause, around 1,000 affected by knock-on effects and 3,000 in the wider supply chain. It also checked Ratcliffe's claims, noting the figures were unverified and that UK gas prices are about two and a half times higher than in February, largely due to the Iran war.
- “while the 245 people employed directly by INEOS here will continue to be paid during this open ended shutdown it's understood around 1,000 workers here could be affected by the knock on impact along with another 3,000 in the wider supply chain.”
- “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.”
- “we haven't been able to verify his figures and comparisons do vary but the price of UK gas has risen, it is now two and a half times higher than it was in February largely due to the war on Iran.”
GB News turned the announcement into an angry political attack on the government's energy and net zero policies. It mocked a minister's criticism of Ratcliffe as a tax exile while arguing that the UK is driving away its biggest investors. The segment used the closure to call for domestic oil and gas extraction and described the state of the chemicals industry as a catastrophe.
- “today Jim Ratcliffe has announced that three plants in hull will cease production with 4 000 jobs being mothball”
- “this is a catastrophe that's been building over the last five years where 25 plants in the heavy chemical sector have closed in that period”
- “it's the net zero policy that means that when prices do fall in fossil fuels we don't benefit because we've put long-term high prices into the system and that really hurts industry”
Politics Live moved the story into a studio debate about political credibility, energy security and the case for new gas drilling. It highlighted that Ratcliffe is based in Monaco and does not pay UK tax, while also pressing the government on high energy costs and its £350 million support for the chemicals sector. The panel split over whether approving Jackdaw and Rosebank would protect jobs or make little difference.
- “he has announced that he is pausing production at its three plants in Hull and he's blaming high UK gas prices.”
- “he's somebody who's based in Monaco, doesn't pay his taxes. So I think my constituents would be dubious about his criticism.”
- “the government has provided 350 million pounds of support specifically for that industry.”
Broadcast Timeline
News broadcasts tracked for this story, in time order.