Key facts
- Ineos Inovyn has acquired full control of the Runcorn salt plant.
- The deal is expected to prevent the UK from becoming reliant on imported salt.
- The Runcorn plant is one of the UK's last two remaining salt processing factories.
- The plant supplies 98% of the chlorine used to treat Britain's drinking water.
- The acquisition aims to strengthen the UK's national resilience in essential chemical products.
Ineos has acquired full control of the Runcorn salt plant by purchasing the remaining 50% stake, a move that is expected to prevent the UK from becoming reliant on imported salt for the first time in its history. The deal, anticipated to be finalized by the end of 2026, safeguards one of the UK's last two salt processing facilities.
Earlier this year, Inovyn, the chlorine division of Jim Ratcliffe's chemical conglomerate, had warned of potential closure for the Runcorn plant due to soaring energy costs in the UK. Without government support, the plant's shutdown would have left Britain with only one salt processing site, increasing dependence on imports for a material crucial to water purification, construction, plastics, and explosives.
Stephen Dossett, Ineos boss, stated that the acquisition reflects confidence in the Runcorn site and its workforce, emphasizing the importance of chlor-alkali products for modern life and national resilience. The transaction is subject to regulatory approval.
The deal occurs amidst growing concerns about the erosion of the UK's industrial base, attributed to persistently high energy costs and carbon taxes. The chemical sector has been particularly hard-hit, shrinking by 20% in the last three years. The Runcorn site's operator, Vynova Runcorn Limited, had entered administration in December of the previous year, putting approximately 90 jobs at risk and jeopardizing about half of the UK's salt production capacity.
Ineos founder Jim Ratcliffe has been a vocal critic of UK and European energy policies, citing industrial energy prices that are significantly higher than in the US and double those in the EU. He has called for the abolition of UK's net zero levies, arguing they are detrimental to manufacturing and hinder investment in efficiency and sustainability projects.