by Sam Hawcroft
INEOS has announced it will cut 20 per cent of the workforce at its Acetyls plant at Saltend, with 60 skilled jobs set to go amid what the company describes as “sky-high energy costs” and “anti-competitive trade practices”.
The firm says cheap, carbon-heavy imports from China are being “dumped” into UK and European markets, undercutting domestic producers.
These products, made using coal and emitting up to eight times more CO₂ than UK operations, are blocked from entering the US by tariffs but face no barriers in the UK or Europe.
David Brooks, CEO of INEOS Acetyls, said: “This is a very difficult time for everyone at the 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, we’ve been left with no other choice. Our priority now is to support those affected and protect the long-term future of the site.”
INEOS, which recently invested £30 million at the Saltend site to switch from natural gas to hydrogen and cut emissions by 75 per cent, is calling on the UK Government and European Commission to introduce urgent anti-dumping tariffs to protect the chemicals sector. The company warns that without action, more sites could close and thousands more jobs could be lost.
The news comes just weeks after the closure of the Vivergo Fuels bioethanol plant at Saltend, which resulted in hundreds of redundancies. Industry leaders at the time warned that the site’s closure could have a knock-on effect across the wider chemicals cluster.
Beverley and Holderness MP Graham Stuart said: “It’s horrifying to see this Labour Government presiding over another 60 job losses at Saltend following the hundreds lost at Vivergo. Ministers need to get a grip or we are going to lose our entire industrial base.
“I’ve written to the Government demanding an inquiry by the Trade Remedies Authority and immediate action to ensure that our core chemicals industry is not allowed to be destroyed. Sixty jobs have gone but 240 remain at the INEOS plant. The Government must act and act now.”
Hull City Council leader Cllr Mike Ross also described the announcement as “deeply worrying”. He said: “It is concerning to see this so soon after the job losses at Vivergo. Hull and the wider area are being left behind by this Government and let down by our new mayor.
“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 spokesman 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 per cent above their levels before Russia invaded Ukraine.
“Our modern Industrial Strategy is slashing electricity costs by up to 25 per cent 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.”
INEOS is the largest producer of acetic acid, acetic anhydride, and ethyl acetate in the UK and Europe – chemicals essential for products ranging from pharmaceuticals and food preservation to coatings and adhesives.