Britain’s last major chemical plants at risk as energy prices surge amid global tensions

Rising energy prices had caused major risks and new challenges for manufacturing sectors.

One of Britain’s last major chemical plants is also at risk as energy prices surge globally in the wake of recent tensions.

If costs stay high for the next three months, the American owner of one of Britain’s last major chemical plants has said he will close the site if energy prices remain at their current levels for the next three months.

Huntsman Corporation has plants across the US, Europe, Southeast Asia, and the Middle East—but unlike its American operations, its UK and European sites are acutely exposed to international gas markets, where prices have surged to their highest point since Russia’s invasion of Ukraine.

“You’re not seeing this in China, America or the Middle East, surprisingly, where the war is,” said Huntsman. “You’re seeing it in the EU and the UK, and they’re being hit the hardest.”

The multinational had already cut nearly 10% of its global workforce last year—about 500 jobs with the largest share in Europe—and closed seven facilities, citing high energy costs.

One of the UK’s richest people has described the situation as “unsurvivable” for chemical plants in Europe owing to “rising carbon costs and weak trade defense."

Huntsman called the troubles "self-inflicted," adding that successive governments had not done enough to bring down industrial energy bills.

In the last decade, the UK has lost its last domestic producers of ammonia, a core fertilizer, and sulfuric acid, key for making explosives, raising concerns about sovereign capability in food production and defense manufacturing.

“Failed energy policy has made UK industry less resilient. A crisis like this should not impact the chemical industry like this," said Huntsman.