INEOS Suspends Production at Three Acetyl Chemical Plants in Hull, UK

en.Wedoany.com Reported - On September 22, INEOS announced the suspension of production at three large acetyl chemical plants in Hull, UK, due to persistently high natural gas prices in Europe. These plants use natural gas as both an energy source and a raw material, and existing costs have made it difficult to maintain competitiveness. All three plants are located at the Hull production site; two have already ceased production, and the third is scheduled to shut down within days. The duration of the suspension has not yet been determined.

INEOS stated that these three plants are the only remaining large-scale acetyl chemical production units in Europe. Their products serve as chemical intermediates for downstream sectors including pharmaceuticals, food, clothing, cosmetics, detergents, building materials, and high explosives, primarily supplying the European market. The company disclosed that the three plants and related industrial chains support nearly 4,000 technical positions.

Energy costs are the direct constraint behind this suspension. According to INEOS figures, natural gas prices in Europe are currently about 12 times those in the United States, and production costs based on European natural gas are significantly higher than those of comparable production systems in China that use coal as their energy and feedstock base. On September 22, the UK front-month natural gas price was approximately USD 23.51 per million British thermal units, while the US Henry Hub benchmark natural gas price for the same period was approximately USD 2.84 per million British thermal units.

The Hull plants had previously continued to receive investment in energy-saving and low-carbon upgrades. INEOS stated that the existing plants are already among its production assets with relatively high energy efficiency and emissions performance. This suspension is not due to equipment failure or planned maintenance, but is a direct halt of production. According to the company's arrangements, the plants will be maintained in a mothballed state, and the timing of any subsequent restart will depend on improvements in energy prices and the related production economics.

INEOS has continuously adjusted its European chemical assets in recent years. In October 2025, the company announced plans to close two production plants in Rheinberg, Germany, affecting 175 positions, citing energy costs, carbon costs, and import competition as reasons for the closure at that time. In June 2026, INEOS further postponed the restart plan for its phenol plant in Antwerp, Belgium, to after 2027.