INEOS has suspended production at its three acetyls plants in Hull, UK, citing European gas prices around 12 times higher than in the US. The facilities, which produce acetic acid, acetic anhydride, and ethyl acetate, are the last large-scale industrial acetyls units in Europe. The company says the shutdown could increase emissions if Europe replaces local production with imports from the US or China, where carbon footprints are higher. The move also opens potential export opportunities for Saudi producers like Sipchem, though shipping costs and competition will decide the outcome. The shutdown highlights the tension between carbon policy and industrial competitiveness. INEOS argues that carbon taxes combined with high energy costs are pushing jobs and emissions abroad. The situation may test the EU's carbon border adjustment mechanism and its ability to prevent carbon leakage.
