Europe could lose $1tr chemicals sector
In an open letter to European Commission president Josè Barroso, Ratcliffe said chemicals was a “jewel in the crown” of the EU economy and urged political leaders to protect it from impending extinction.
The industrialist, who almost closed Ineos’ huge Grangemouth petrochemical plant last year before unions agreed to his demands on pay and conditions, said the shale gas revolution in the US meant American factories enjoyed far cheaper energy prices.
Advertisement
Hide AdAdvertisement
Hide AdHe said: “In the US, cheap shale gas has led to a massive expansion of the petrochemical industry. The United States is expected to become entirely self-sufficient by 2020. In contrast, Europe announces closure after closure.
“I can see green taxes, I can see no shale gas, I can see closure of nuclear, I can see manufacturing being driven away. I can see the competition authorities in Brussels blissfully unaware of the tsunami of imported product heading this way and standing blindly in the way of sensible restructuring.”
Over the past three years, Ineos’ profits in Europe have halved, Ratcliffe said, whereas its US profits have tripled.
Even BASF, the world’s largest chemical company, has for the first time announced a strategic cutback in European investment.