A petrochemical company has announced plans to reduce its workforce by 60 positions at its Ineos Acetyls plant located near Hull in East Yorkshire, citing elevated energy costs and low-cost imports from China as primary reasons for this decision. The facility produces various products, including acetic acid, used in manufacturing processes.
Company executives reported that they had considered all available alternatives before arriving at this decision and indicated that further job losses across the sector may be necessary unless government intervention occurs. In response to the announcement, a government spokesperson acknowledged the challenges faced by workers and their families, affirming ongoing discussions with Ineos and the broader chemical industry to seek viable solutions.
David Brooks, chief executive of Ineos Acetyls, described the current situation as difficult for the skilled workforce at the Hull site, emphasizing that the job cuts were not made lightly. He remarked that the sustained pressures from energy costs and inadequate pricing of imports have forced the company into this position. Brooks noted that his priority moving forward is to provide support for those affected while also ensuring the long-term viability of the site.
The situation at Ineos Acetyls is part of a broader structural issue impacting chemical companies throughout the UK and EU. A government spokesperson highlighted that the chemicals industry is facing increased costs related to fossil fuels, with gas prices remaining significantly higher since the onset of the conflict in Ukraine. The government is reportedly addressing these issues with an industrial strategy aimed at reducing electricity costs for affected sectors, including chemicals, and has the ability to investigate the effects of low-cost imports through its Trade Remedies Authority if requested.
Source: https://www.bbc.com/news/articles/c147d1x5kljo?at_medium=RSS&at_campaign=rss