The European chemical industry is becoming extinct: An open letter from INEOS CEO Sir Jim Ratcliffe
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 chemicals in Europe is facing extinction. 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. It produces many critical raw materials essential for modern living and employs 10,000 people, including the support services.
The gas bill is €100 MM higher than its US equivalent. The electricity bill is €40 MM higher than in the US. The carbon tax bill is rising towards a shocking €100 MM.
The industry is in crisis with such huge disadvantages. Instead of investing in growth for the future, it is fighting for survival.
Government policies will shut all petrochemicals in Europe. All our major competitors are planning for withdrawal from Europe as government has failed to act time after time.
The consequence of this policy is that Europe will import all its raw materials from the U.S. and China, who will benefit enormously.
Decarbonizing Europe by deindustrialization is idiotic. We lose jobs and security and the CO2 simply floats back over Europe anyway.
The solution is to ban carbon tax, provide competitive energy for industry and incentivize growth and clean technology. We also need tariff barriers while these changes are being implemented or there will be nothing left.
This is the U.S. approach, where they value industry and its high value employment and they are leaving Europe behind in their dust.
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