Uncompetitive European energy and carbon costs force INEOS Phenol to announce...

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INEOS Phenol, the world's largest producer of phenol and acetone, announced today its intention to permanently stop production at their site in Gladbeck, Germany. Sky high European energy costs alongside Europe's punitive CO₂ tax policy have combined to leave Europe uncompetitive against imported Chinese production and a global oversupply.

After carrying out a detailed strategic review, the business intends to permanently exit the Gladbeck site at a date to be confirmed. Europe's lack of competitiveness has already led to the exit of several downstream consumers of phenol and acetone to such an extent that local demand no longer supports the operation of the Gladbeck site which dates from 1954 and requires significant future investment.

Commenting, Sir Jim Ratcliffe, Chairman of INEOS said, "This is the consequence of Europe's total lack of energy competitiveness and the blind devotion to carbon taxation which is leading to a mass deindustrialisation across the continent. Gladbeck is not the first and will definitely not be the last unless the regulators wake up and take action"

INEOS Phenol will now enter into consultation with the works council, employees, customers and suppliers to exit the site in a safe, responsible and compliant manner.

We remain committed to the phenol business, to serve our customers around the world.

Notes for Editors

• The INEOS Phenol plant at Gladbeck has the capacity to produce 650,000 tonnes of product each year, making it one of the largest plants of its kind in the world.
• The site employs 279 people directly and indirectly supports over 1500 jobs.
• The phenol and acetone that the site produces goes into a wide variety of uses
  - Front and rear light clusters for cars
  - Resins that are essential for printed circuit boards and for the manufacture of wind turbine blades
  - Resins for making automotive brake pads
  - Solvents for use throughout manufacturing industry

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