INEOS is mothballing three acetyls production units at its facility in Hull, UK, citing persistently high energy costs. The move highlights the energy-cost disadvantage facing European chemical manufacturers compared with producers in other regions.
The affected units have a combined annual production capacity of 850,000 tonnes. They produce acetic acid, acetic anhydride and ethyl acetate.
Two units had ceased production by September 22, and INEOS expected the third to follow within days. The shutdown is expected to tighten European supply of these chemical intermediates, which are used in products including paints, coatings, adhesives and textiles.
The decision is expected to increase Europe's reliance on imports and raises concerns about regional availability and potentially higher replacement costs for customers. It underscores the structural challenges and competitive pressures facing Europe's heavy industry and chemicals sector.