Andy Burnham has called on Sir Jim Ratcliffe to work with him “in Yorkshire as we’ve worked … here in Greater Manchester” after Ineos announced plans to mothball three plants in Hull.

Andy Burnham has called on Sir Jim Ratcliffe to work with him “in Yorkshire as we’ve worked … here in Greater Manchester” after Ineos announced plans to mothball three plants in Hull.

Thousands of jobs have been put at risk after Ineos suspended operations at three of the UK's biggest chemicals plants

INEOS to mothball three Hull chemical plants amid soaring energy costs

Sir Jim Ratcliffe, owner of Ineos, has announced the suspension of production at three key UK plants in Hull, citing the high cost of natural gas as the primary reason. The company stated that gas prices in the UK are twelve times higher than in the US and eight times more expensive than the coal-based processes used by Chinese competitors. Ratcliffe emphasized that Ineos, which operates some of the most efficient plants in Europe, is being forced to mothball its facilities due to the unsustainable cost disparity. The plants produce essential raw materials for pharmaceuticals, clothing, cosmetics, detergents, construction materials, and military explosives. The decision will impact up to 1,000 staff, with 245 working directly at the sites. Ineos is exploring options to mitigate the situation, including purchasing liquefied natural gas (LNG) directly from the US at lower prices, a process that could take up to a year, or waiting for gas prices to decrease. The company has also called on the UK and EU governments to implement tariff protections against Chinese imports. Ratcliffe criticized the current government's energy policy as 'economic vandalism on an industrial scale,' noting that the wholesale price of natural gas has nearly doubled in the UK and Europe since July. This increase is partly attributed to disruptions in oil and gas supplies through the Strait of Hormuz following the US-Israel war in Iran. Ineos highlighted that its Humberside plants are among the most efficient globally, producing materials with half the carbon footprint of US rivals and one-eighth that of Chinese equivalents. This is the second time in less than a week that Ratcliffe has publicly criticized UK government policies, having previously expressed concerns about high taxes and immigration, stating that the UK is 'on the slide.' The Department for Business, Innovation, Science and Trade responded by highlighting measures such as a £350 million investment for strategically important chemicals producers and trade measures against foreign chemical imports to support the industry. The announcement has raised concerns for workers in Saltend and their families, with the government acknowledging it as a 'concerning time' for them.