Page 151 - CW E-Magazine (28-1-2025)

News from Abroad

HIGH OPERATING COSTS
Ineos ceases ethanol production in UK amidst

concerns over chemical sector’s decline

UK chemicals giant Ineos has in the last five years alone and, in com-
closed its last remaining synthetic etha- plete contrast to the US, has not had one
nol production plant in the UK, citing new chemical plant built for a genera-
high energy prices and high carbon tion. Energy prices have doubled in the
taxes as primary reasons behind the UK in the last five years and now stand
decision. five times higher than those in the US.
The UK cannot compete with such a
Following the closure of the huge disadvantage, Ineos said.
180,000-tpa Grangemouth plant in
Scotland, Ineos’ Chairman Sir Jim Sir Ratcliffe has called on the UK
Ratcliffe said that the UK’s chemicals added that the UK’s emissions trading government is for an energy policy
industry faces “extinction”. scheme has effectively served as a tax that ensures competitive pricing, and
on UK producers, favouring imported a carbon trading regime that “supports
“De-industrialising Britain achieves products from countries without such a industry and decarbonisation equally”.
nothing for the environment. It merely scheme.
shifts production and emissions else- Earlier in September 2024, it
where. The UK, and particularly the The closure, announced in March was announced that an oil refinery
North, needs high quality manufactur- 2024, resulted in 80 job losses, while in Grangemouth co-owned by Ineos
ing and the associated manufacturing more than 500 were affected indirectly. would close in the second quarter of
jobs. We are witnessing the extinction The facility was one of only two syn- 2025 resulting in 400 job losses. The
of one of our major industries as chemi- thetic ethanol plants in Europe, predo- announcement led to the launch of
cal manufacture has the life squeezed minantly supplying to healthcare and Project Willow, a joint initiative from
out of it,” Sir Ratcliffe said. He blamed pharmaceuticals sectors. the UK and Scottish governments to
the Scottish plant’s closure on what he investigate how Grangemouth could
called the UK’s “lack of energy strategy” The UK has reportedly seen the be transformed into a low-carbon manu-
as well as high energy prices. He closure of 10 large chemical complexes facturing hub.

RESTRUCTURING
AkzoNobel to streamline France operations; over

200 jobs to be cut

Dutch paint and coatings major, establish it as a flagship site for decora- support function and its distribution
AkzoNobel, is anticipating to lay off of tive paint production. network, including the transfer of some
up to 211 employees in France, about outlets to independent partners and some
16% of its workforce in the country, “These measures are designed to closures. In 2024, AkzoNobel as part of
under a reorganisation plan. rationalise, modernise, and optimise its ‘Industrial Excellence’ programme
AkzoNobel’s operations, ensuring already announced the closure of its
The restructuring would be carried long-term success while maintaining its manufacturing sites in Groot-Ammers
out from May 2025 until the end of strong presence in France. The proposed (the Netherlands), Cork (Ireland) and
2026. The plan also includes creation plan focuses on streamlining operations. Lusaka (Zambia). Production from these
of 29 new positions in the country.As This will enhance competitiveness and sites has been transferred to other loca-
part of the programme, AkzoNobel will drive sustainable growth,” the company tions in the region. The plans anticipated
invest Euro 22-mn into its Montataire said in a press note. The company also cutting about 2,000 jobs globally by the
site in Northern France, with an aim to plans to reorganise its commercial and end of 2025.

Chemical Weekly January 28, 2025 151

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