INEOS is idling all three of its world scale chemical plants in Hull as energy prices hit 12x those in America. The three plants which are being halted are Europe’s last remaining world scale Acetyls units manufacturing the raw material for a huge range of the Europe’s critical materials together with pharmaceuticals, clothing, cosmetics, detergents, construction materials and military explosives.
The 3 plants help almost 4,000 extremely skilled jobs with related apprenticeship schemes and their products are sold across Europe.
The gas price in Europe is now 12 times higher than in the USA and these plants use gas for both energy and as a feedstock in the manufacturing procedure. In addition, European gas is 8 x more costly than manufacturing based on coal from China.
The effect on CO2 emissions is equally devastating with US made product having a carbon footprint of 2 x the European level and Chinese made material at 8x higher than.
INEOS in Hull operates 3 global scale chemical intermediate plants manufacturing the building blocks for a huge range of industries across Europe including pharmaceuticals, food products, clothing, cosmetics, detergents, construction materials and high energy military explosives. The plants are the last remaining Acetyls units in Europe with all others having already closed due of uncompetitive energy costs.
European gas prices have now hit 12 x the level of those in the USA and INEOS has taken the tough decision to mothball all three of the units till further notice. Two of the plants have already ceased manufacturing with the third because of come off line in few days.
Thanks to continuous investment by INEOS in the Hull operations, these units are amongst the most efficient in the world and operate at the lowest possible level of CO2 emissions. The Hull units produce material with a carbon footprint this is 2 times lower than that produced in the US and 8 times lower than Chinese material.
Commenting, Sir Jim Ratcliffe, Chairman of INEOS stated; “I’m sure people will find it tough to believe that we’re 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 simply cannot compete.
“Not only is the ridiculously high gas price destroying our production base and the jobs of hard-working people on Humberside, it’s also vastly growing the environmental burden with alternative products supplied from the USA at double the carbon emissions and from China at 8 times the emission level.
“The European regulators need to wake up to the fact that the combination of high energy costs and the additional burden of unsustainable carbon taxes are destroying our European production base. Ironically this will result in higher CO2 emissions from less efficient Chinese and US manufacturing. The net result of these current guidelines is to inspire coal based manufacturing in China and the wholesale export of jobs to both China and the USA.”
