Chemical producer Ineos axes 60 jobs in Hull
Chemical producer Ineos is cutting a fifth of jobs at a plant in Hull.
Sir Jim Ratcliffe’s firm said 60 jobs would be cut at the Ineos Acetyls site, which makes petrochemical products such as acetic acid. He said more roles across the industry would be at risk without government intervention.
The firm said “carbon-heavy” imports from China are “flooding the market” after they were blocked from entering the US due to recent tariffs.
Ineos called on the UK government and European Commission to launch their own tariffs in an effort to stop China from undercutting local competitors with stronger environmental credentials.
It claimed that many competitor products from China are made using coal and emit up to eight times more CO2 than Ineos’s UK operations.
The firm warned that “more sites will close and thousands more jobs will be lost” across the chemical industry unless action is taken.
It comes only months after Ineos shut down processing at its oil refinery in Grangemouth, in Scotland, hitting around 400 jobs.
On Monday 6 October, Ineos revealed plans to shut two plants in Germany due to high chemical sector costs in the EU.
David Brooks, chief executive of Ineos Acetyls, said: “This is a very difficult time for everyone at the Hull facility.
“We have a leading-edge, efficient and well-invested site and the team here is highly skilled, professional, and dedicated.
“Making the decision to cut 60 roles was not taken lightly.
“We have explored every possible alternative but in the face of sustained pressure from energy costs, combined with unfairly low-cost imports into the UK and Europe, we’ve been left with no other choice.”
Hull City Council leader Councillor Mike Ross (Lib Dem) said: "It is deeply worrying to see this so soon after the job losses seen at Vivergo. “Hull and the wider area are being left behind by this Government and let down by our new mayor, who is absolutely silent on his plans to help our economy. “We urgently need to hear from the Government and the Mayor about what they’re doing to support people in Hull and our local economy. As Council Leader, I am prepared to work with them, but they need to come forward with more support for our area.”
A Government spokesperson said: "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."
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