Peter Huntsman, the American owner of one of Britain’s last major chemical plants, has warned he will close the Teesside site if energy prices remain high for the next three months. The factory in Wilton, which employs about 80 people and produces aniline, is among the last remnants of the former Imperial Chemical Industries (ICI).
Huntsman, chief executive of Texas-based Huntsman Corporation, said the recent surge in gas prices driven by the Iran conflict was “another nail in the coffin” for European heavy industry. He noted that four years ago, the UK site produced the cheapest aniline globally, but it is now the most expensive.
The company has already cut nearly 10% of its global workforce and closed seven facilities due to high energy costs. Huntsman criticised UK energy policy as “self-inflicted”, saying successive governments had failed to reduce industrial energy bills. “Failed energy policy has made UK industry less resilient,” he said.
The warning echoes that of Jim Ratcliffe, whose Ineos group received a £120m government bailout in December to save its Grangemouth ethylene cracker. UK chemical production has fallen by 60% since 2021, with at least 25 site closures, raising concerns about sovereign capability in food production and defence manufacturing.
Huntsman said he was running out of reasons to invest in Britain, given the lack of growth or incentives. A government spokesperson acknowledged the tough times for the chemicals industry, noting that the government is providing support through the Energy Security Bill and the British Industry Supercharger scheme.
