Sir Jim Ratcliffe’s conglomerate Ineos is suspending operations at three chemicals plants in Hull, which support 4,000 jobs and produce chemicals used in pharmaceuticals, clothing, construction materials and military explosives. The company said it had “taken the difficult decision to mothball all three of the units until further notice” because gas prices had made European production uncompetitive. Ratcliffe said the price of gas in Europe was 12 times higher than in the US and eight times more expensive than production based on coal in China. “I’m sure people will find it hard to believe that we are being forced to mothball some of the most efficient plants in Europe but . . . we just cannot compete,” he said in a statement.

Ineos has been vocal over its warnings on the state of the European chemicals sector. Last year, it said the sector in Europe was “facing extinction”, citing environmental policies designed to combat global warming that have resulted in “enormously high energy prices” and carbon tax bills.