Sir Jim Ratcliffe suspends production at key UK plants blaming high gas prices

Billionaire Sir Jim Ratcliffe's industrial giant Ineos is pausing production at its three plants in Hull, blaming high UK gas prices.

The firm said gas prices in the UK are twelve times higher than in the US, and eight times more expensive than the coal-based processes used by Chinese competitors.

Sir Jim said: "We are being forced to mothball some of the most efficient plants in Europe, but with gas prices now 12 times the level in the US and 8 times that of China, we just cannot compete."

The facilities produce raw materials used to make pharmaceuticals, clothing, cosmetics, detergents, construction materials and military explosives in the UK and Europe. Gas is a key ingredient in production.

Ineos said the move will affect up to 1,000 of its staff, of whom 245 work directly at the site.

But the BBC understands workers across the sites will be kept on while Ineos tries to buy liquefied natural gas (LNG) directly from the US at lower prices - which could take up to a year - or waits for gas prices to go down.

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Ineos is asking governments in the UK and the EU — where most of its products are exported to — to put in tariff protections against Chinese products.