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Ineos Investment Boosts UK Manufacturing Amidst Crisis
17 Dec
Summary
- Ineos chairman warned of the chemical industry's end in Britain.
- ExxonMobil plans to close part of Mossmorran plant, losing 400 jobs.
- 40% of UK ethylene gas capacity is at risk of closure due to costs.
The UK's chemical industry faces an uncertain future due to escalating energy costs and carbon taxes, prompting warnings of a potential collapse. Ineos chairman Sir Jim Ratcliffe highlighted these challenges in January, but a recent investment package signals a commitment from Ineos and the UK government to bolster British manufacturing.
This investment is intended to safeguard approximately 500 high-value jobs, ensure supply chain stability, and preserve essential industrial capacity for the nation. The UK government has acknowledged the widespread impact of high energy expenses on the chemicals sector across Europe.
These economic pressures have already led to significant disruptions, with ExxonMobil planning to shutter a portion of its Mossmoran chemical plant in Fife by February, resulting in up to 400 job losses. The situation remains critical, as an estimated 40% of the UK's ethylene gas capacity is either currently non-operational or under threat of closure.
