For Sir Jim Ratcliffe, Inoes, the European chemical industry risks “extinction”

In an open letter sent to European politicians in recent days, Sir Jim Ratcliffe, President and CEO of Ineos, warns of the possible “extinction” of the chemical industry in the Old Continent. The chemical industry in Europe has been hugely important to the success of the European economy over the last century. With revenues of around one trillion euros, it is similar in size to the automotive sector. But government policies have resulted in enormously high energy prices and crippling carbon tax bills.

Ineos operates one of the largest and most advanced, integrated petrochemical facilities in Europe in Cologne (Germany). It produces many critical raw materials essential for modern living and employs 10,000 people, including the support services. But costs are becoming unsustainable. As Ratcliffe reports, the gas and the electricity bills are 100 million euros and 40 million euros higher than in the US respectively. The carbon tax bill is rising towards a shocking 100 million euros.

In these extremely adverse conditions, the Ineos President and CEO points out, the industry is in crisis, and instead of investing in growth for the future, it is fighting for survival. Government policies will shut all petrochemicals in Europe. “All major competitors are planning for withdrawal from Europe as government has failed to act time after time”, Ratcliffe writes.

The consequence of this policy is that Europe will import all its raw materials from the USA and China, who will benefit enormously. “Decarbonising Europe by deindustrialisation is idiotic. We lose jobs and security, and the CO2 simply floats back over Europe anyway”, the President and CEO Of Ineos adds.

According to whom, the solution is to ban carbon tax, provide competitive energy for industry and incentivise growth and clean technology. Measures that should be supported by the adoption of tariff barriers while the transition is taking place. This is the US approach, where – Sir Jim Ratcliffe concludes – they value industry and its high value employment and they are leaving Europe behind in their dust.