INEOS idles Hull acetyls complex as gas costs reach 12× US levels
- INEOS has mothballed all three world-scale acetyls plants in Hull; two have already stopped and the third will shut in a few days.
- The units are Europe’s last remaining world-scale acetyls producers and support almost 4,000 skilled jobs and apprenticeship schemes.
- European gas prices are reported at 12× US levels and about 8× more expensive than Chinese coal-based production.
- INEOS states Hull product has a carbon footprint two times lower than US-made material and eight times lower than Chinese material.
Action taken
INEOS has idled all three world-scale acetyls plants in Hull; two units have already ceased production and the third is due to be taken off line in a few days. The company describes the decision as a response to sharply higher European gas prices versus global competitors.
Scope and employment
The three plants are the last remaining acetyls units in Europe and supply raw materials used across pharmaceuticals, food products, clothing, cosmetics, detergents, construction materials and high-energy military explosives. They support almost 4,000 highly skilled jobs and associated apprenticeship schemes, with products sold throughout Europe.
Costs and emissions
INEOS cites European gas at 12 times US levels and roughly 8 times more expensive than coal-based production in China; the plants use gas for energy and feedstock. The company states the Hull units are among the most efficient globally after repeated investment and produce material with a carbon footprint two times lower than US-made product and eight times lower than Chinese material.
Company comment
Sir Jim Ratcliffe said high gas prices and the cumulative impact of energy costs and carbon taxes make the plants uncompetitive, risk exporting jobs to the US and China, and could increase global CO2 emissions by shifting production to less efficient facilities.
Source: INEOS