UK Chemicals Industry Faces Collapse Due to Energy Costs and Carbon Policies

Ineos chairman Sir Jim Ratcliffe warns of the industry's decline as Grangemouth ethanol plant shuts, citing uncompetitive energy prices and regulatory burdens.

• Ineos has closed the UK's last synthetic ethanol plant at Grangemouth, resulting in 80 job losses directly and affecting over 500 roles indirectly in the surrounding economy.
• The UK chemicals industry has seen 10 major plant closures in the past five years, with no new facilities built in decades, leaving the sector struggling to compete globally.
• High energy costs, which have doubled in the UK over five years and are five times higher than in the US, are cited as a key factor in the industry's decline.
• Ineos has called for government action, including globally competitive energy pricing, reforms to the emissions trading scheme, and trade policies that support domestic manufacturing.
• The closure of the Grangemouth plant leaves the UK reliant on imports for synthetic ethanol, a critical component in pharmaceuticals, disinfectants, and other products.

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