Chemical group Ineos has confirmed the elimination of 60 jobs at its acetyls site in Hull, United Kingdom, representing a 20% reduction in its local workforce. This decision comes amid ongoing pressure on the European chemical sector, affected by high energy costs and foreign imports deemed unfair.
A pressured market environment
According to Ineos, the announced measures are a direct consequence of soaring energy prices and what it described as anti-competitive trade practices, particularly the influx of cheap Chinese and US products into the European market. These imports, partially coal-based, emit up to eight times more carbon dioxide (CO2) than locally produced goods, the company stated.
The group noted that these same products have been blocked by tariffs in the United States but continue to enter the United Kingdom and the European Union without restriction. Ineos has issued a formal call to the UK government and the European Commission to implement immediate antidumping duties to preserve the competitiveness of the regional chemical sector.
Production rationalisation across Europe
This announcement follows a series of production reductions initiated by Ineos across Europe. The company recently shut down units in Grangemouth, United Kingdom, and Geel, Belgium, and is currently preparing to close its phenol site in Gladbeck, Germany. Facilities in Tavaux, France, and Martorell, Spain, have also been mothballed.
The European petrochemical sector is experiencing a wave of production rationalisation, driven by sustained weak demand, oversupply and increased competitive pressure from low-cost imports.
Renewed calls for trade protection
Ineos invested GBP30 million at the Hull site to switch to hydrogen power, reducing CO2 emissions by 75%. Despite these efforts, management stated it cannot offset the impact of cheaper imports.
David Brooks, Chief Executive Officer of Ineos Acetyls, said the Hull site remains high-performing and well-equipped, but after considering all options, the company was forced to implement the reductions due to sustained pressure from costs and what it considers unfairly priced competition.
The company believes that without rapid action on trade, energy and carbon policy, further closures may follow, threatening thousands of jobs across the United Kingdom and Europe.
