Ineos, the chemicals group founded by Manchester United co-owner Sir Jim Ratcliffe, has hit out at the government after cutting a fifth of the workforce at a factory in Hull.
The company said 60 skilled jobs were going at the Acetyls factory “as a direct result of sky-high energy costs and anti-competitive trade practices, as importers ‘dump’ product into the UK and European markets”.
It called on the UK government and European Commission to impose trade tariffs on China, complaining that a lack of action to date had resulted in “dirt cheap” carbon-heavy imports flooding the market, making its products uncompetitive.
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Ineos said the US had protected its manufacturing base through effective tariffs and warned that further jobs would be lost across Europe unless the authorities followed suit.
The company, founded by Sir Jim in 1998, is Europe’s largest producer of essential chemicals for a range of products including aspirin and paracetamol, adhesives and industrial coatings.
It recently invested £30m to switch its Hull plant energy source from natural gas to hydrogen. Ineos claimed Chinese competitors were emitting up to eight times more carbon dioxide than its UK operations.
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“This is a textbook case of the UK and Europe sleepwalking into deindustrialisation,” the firm’s statement said.
“Ineos has invested heavily at Hull to cut CO₂, yet we’re being undercut by China and the US while left wide open by a complete absence of tariff protection.
“If governments don’t act now on energy, carbon and trade, we will keep losing factories, skills and jobs. And once these plants shut, they never come back.”
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A Government spokesperson responded: “We know this is a tough time for our chemicals industry, who are paying the fossil fuel penalty, with wholesale gas costs remaining 75% above their levels before Russia invaded Ukraine.
“Our modern Industrial Strategy is slashing electricity costs by up to 25% for sectors including chemicals, and the UK’s independent Trade Remedies Authority has the power to investigate the impact of cheap imports if requested by industry.
“We recognise this will be difficult for affected workers and their families, and we continue to engage with Ineos and the wider sector to explore potential solutions that will ensure a viable chemicals industry in the UK.”
