Ineos chairman Jim Ratcliffe has claimed the UK is witnessing the “extinction” of one of its major industries as chemical manufacturing has “the life squeezed out of it.”
Ratcliffe spoke out after Ineos confirmed the closure of the UK’s only synthetic ethanol production plant at Grangemouth in Scotland.
Ineos said all affected direct employees associated with the ethanol plant operations will be redeployed across the chemicals business at Grangemouth.
But the firm said this still results in a net job loss of 80 roles at Grangemouth, with a further impact of more than 500 indirect roles in the wider economy.
In a statement, Ineos said high energy prices and high carbon taxes have “forced the closure of this strategic UK asset.”
The company said Grangemouth is one of only two in Europe and since the start of production over 40 years ago, has produced the equivalent of 25 billion bottles of Scottish whisky.
“The UK, which used to be a major force in chemicals, employing a large and highly skilled workforce, has seen the closure of 10 large chemical complexes in the last five years alone and, in complete contrast to the USA, has not had one new chemical plant built for a generation,” said Ineos.
“Energy prices have doubled in the UK in the last five years and now stand five times higher than those in the USA. The UK cannot compete with such a huge disadvantage.
“The synthetic alcohol, which is essential for the manufacture of many pharmaceutical drugs, is necessary for many of the new blockbuster drugs. It will now be imported.”
Ratcliffe said: “De-industrialising Britain achieves nothing for the environment. It merely shifts production and emissions elsewhere.
“The UK, and particularly the North, needs high quality manufacturing and the associated manufacturing jobs. We are witnessing the extinction of one of our major industries as chemical manufacture has the life squeezed out of it.”
Ineos said synthetic ethanol was produced on the Grangemouth plant predominantly for use in healthcare and pharmaceutical sectors.
“Over the course of its operational lifespan, the plant made the equivalent of 25 billion bottles of Scottish Whisky …” said Ineos.
“Over the last two decades, carbon emissions from our operations at Grangemouth have fallen by almost 50%; we are on a journey towards net zero, but the next steps require significant investment and Governmental support/action …”
Ineos said it is calling upon the UK Government to take urgent action and act in the interests of UK manufacturing in three key areas.
“An energy policy that provides globally competitive pricing of natural gas, and hydrogen, as we move towards net zero …
“An Emissions Trading Scheme that supports industry and decarbonisation equally; the current scheme acts as a tax on UK operators and favours importers who pay nothing …
“A trade policy that supports UK manufacturing in its own domestic markets and does not incentivise imports.”