Multi-million pound manufacturing expansion planned for Hull

The firm said that the deal, which will see it increase production of Ethyl Acetate (EtAc) by 100,000 tonnes per year, is the first major investment into the UK since the country voted to leave the European Union.

INEOS said the decision was based on its confidence in the UK economy and its ability to continue to deliver for its customers.

It is expected that the additional capacity will be available by the end of next year.

EtAc is in high demand for use in pharmaceuticals, cosmetics, inks and flexible packaging andthe Hull plant is already at full capacity.

Jim Ratcliffe, INEOS founder and chairman, says, “We believe in British manufacturing and will support it wherever we can. Our Hull plant is at capacity and this extra investment will enable us to significantly increase production that we will sell all over Europe and across the world.”

The Hull site will also benefit from INEOS’ $1 billion decision to import US Shale gas to Scotland.

A pipeline linking INEOS’ petrochemicals plant at Grangemouth with INEOS Oxide in Hull means the site will be able to use ethylene produced from imported US shale gas, as its main raw material.

Graham Beesley, CEO INEOS Oxide adds, “We are the largest producer of EtAC in Europe and we are about to get a lot bigger. Growth in demand for our products is strong and this investment will support our customers’ needs over the long term”

A spokesman added: “The Hull plant was originally built with expansion in mind and so the project should be completed quickly with very good cost economics. It will also benefit from easy logistical access to Europe and the global market, supporting both import of raw material, and export of EtAc.”