Huntsman Corporation Considers Closing Redcar Plant Amid Soaring UK Energy Costs

Huntsman Corporation is contemplating closing its Redcar chemical plant in Teesside, threatening approximately 100 jobs. The decision stems from soaring UK energy costs, which make sourcing raw materials up to seven times more expensive than overseas. CEO Peter Huntsman warned the plant could shut if high energy prices continue for three months, citing the Middle East conflict's impact. He noted the UK, once competitive, now faces the highest costs, disproportionately affecting European operations compared to global counterparts like China and the US.

Huntsman Corporation, the American owner of the Wilton International chemical plant in Redcar, Teesside, is reportedly considering its closure, jeopardizing approximately 100 jobs. The move is primarily driven by soaring UK energy costs, which have made sourcing basic raw materials up to seven times more expensive than in overseas markets. The plant manufactures aniline, a critical chemical used in a wide array of products including car seats, textiles, and aircraft components, and also produces a versatile polymer.Peter Huntsman, the company's chairman and CEO, stated that if current energy price levels persist for the next three months, the company would likely shut down its UK facility, opting to import products from countries like China or the United States. He attributed the recent surge in gas prices, partly due to the Middle East conflict, as a significant detriment to European industry, noting that the impact is disproportionately felt in the EU and UK compared to regions like China, America, or even the Middle East.The Redcar factory holds historical significance as one of the last surviving plants from the former ICI group and is Huntsman's sole North East site. The company, headquartered in Texas with over 60 global plants, had already embarked on a $100 million cost-cutting program last year, which included 600 job losses and seven European site closures. Mr. Huntsman expressed profound disappointment over the decline of investment in the UK, once a vital operational footprint, and the associated job losses, highlighting the dramatic shift from being the world's lowest-cost aniline producer four years ago to its most expensive today.