Ineos, the chemicals group led by Sir Jim Ratcliffe, has suspended production at its three major acetyls plants in Hull, citing a “dramatic” surge in UK natural gas prices that has made domestic manufacturing uncompetitive.
The company confirmed on 22 September 2026 that it is mothballing the facilities at Saltend Chemicals Park in East Yorkshire. Two of the plants have already ceased operations, with the third scheduled to halt production within days. The decision follows a sharp rise in wholesale gas prices, which have roughly doubled between July and September 2026 amid escalating regional conflict in the Middle East and disruptions in the Strait of Hormuz.
Sir Jim Ratcliffe stated that the price disparity has become untenable, claiming that natural gas in the UK is now 12 times more expensive than in the United States and eight times more expensive than in China. Ineos noted that despite the Hull plants being among the most efficient in Europe—with a carbon footprint half the size of their US counterparts—the extreme energy costs have forced a shift toward importing materials instead of producing them domestically.
Impact on Jobs and Supply Chains
The suspension directly affects approximately 1,000 employees based at the Saltend site. While the plants are being idled, Ineos stated that all current staff will remain in work for the time being to manage the complex technical requirements of the shutdown; no immediate redundancies have been announced. However, industry analysts warn that nearly 4,000 jobs in the wider Humberside supply chain could be at risk if the plants remain closed long-term.
The Saltend facilities are critical to various UK industries, producing acetic acid, acetic anhydride, and ethyl acetate. These chemicals serve as essential raw materials for a wide range of everyday products, including:
- Pharmaceuticals, such as aspirin and paracetamol
- Textiles and clothing
- Cosmetics and detergents
- Military explosives
Government Response and Energy Context
The move marks another significant blow to the UK’s industrial base, following the closure of the Grangemouth refinery earlier this year and previous job cuts at the Hull site in 2025. Energy minister Michael Shanks has urged Sir Jim Ratcliffe to work with the government on reindustrialisation plans.
A government spokesperson highlighted existing support measures for energy-intensive industries, including a £350 million co-investment scheme and “supercharger” discounts on electricity. However, Ineos argued that these measures are insufficient to offset the current gap in gas prices, which recently saw UK front-month gas trading at approximately $23.51/MMBtu compared to just $2.84/MMBtu in the US.
The suspension of the Hull plants raises fresh questions about the vulnerability of the UK’s manufacturing sector to global energy shocks. While the plants are officially being “mothballed”—a state that allows for a potential restart—Ineos has not provided a definitive timeline or set of conditions under which production would resume.
