Major UK Chemical Plant Faces Closure Amid Iran War and Soaring Energy Costs
One of Britain's largest chemical plants in Teesside, owned by Huntsman Corporation, faces closure within three months due to spiraling global energy costs exacerbated by the Iran war. CEO Peter Huntsman blames a failed energy policy and successive governments for making UK industry uncompetitive, warning he would import products instead. The potential closure, affecting 80 workers, highlights broader struggles in the UK's chemical sector, which has seen significant contraction and site closures, mirroring challenges faced by other industrial giants.
Huntsman Corporation's Teesside facility, one of Britain's largest chemical plants and a remnant of Imperial Chemical Industries, is at risk of closure within three months. CEO Peter Huntsman warned that the ongoing Iran war has caused global energy costs to spiral, making operations in the UK economically unsustainable. He explicitly stated that if current economic conditions persist, he would shut down the plant, which employs around 80 workers producing aniline for products like car seats, and import from countries like China or the United States. Huntsman underscored the dramatic shift, noting that just four years ago, the UK facility produced the world's lowest-cost aniline, but is now the most expensive. Huntsman attributed the industry's woes to self-inflicted problems caused by policymakers and successive governments' failure to implement effective energy policies and reduce bills. He expressed reluctance to invest further in Britain, citing a lack of growth and incentivizing policies, contrasting it with thriving operations elsewhere. This situation is indicative of a wider crisis in the UK chemicals sector, which has seen production plummet by 60% since 2021 and at least 25 site closures. Huntsman Corporation itself eliminated 500 global positions last year, with European facilities bearing heavy losses. The challenges mirror those faced by Ineos, which required a government bailout. A government spokesman acknowledged the tough time and emphasized a shift to clean homegrown power to stabilize bills.
