Three chemical plants to be closed by Ineos due to high energy costs

Ineos, the company owned by Jim Ratcliffe, announced on Tuesday that it was halting production at three chemical plants located in Hull. The reason given for this decision is because of the high European gas prices, which have made production too expensive.

Since the energy crisis caused by the Russian invasion of Ukraine, and the Middle East conflict compounded it?, European manufacturers have had to struggle to compete with U.S.

The company stated that the three plants employ nearly 4,000 workers and produce chemicals for use in medicine, clothing, cosmetics and building materials, as well as detergents and explosives.

"The European regulators must wake up and realize that high energy prices combined with the burden of unsustainable CO2 taxes are destroying the manufacturing base in Europe," said Ratcliffe.

Ratcliffe said, "We simply cannot compete with gas prices that are 12 times higher in the US and 8 times higher in China."

According to data from LSEG, and the Intercontinental Exchange, the price of British 'gas on a front-month contract is currently around $23.51 for a million British thermal units.

(source: Reuters)