Teesside chemical plant at risk as energy prices surge

The American owner of one of Britain's last major chemicals plants has said he will close the site if energy prices remain at their present levels for the next three months.

- Alex Daniel

Peter Huntsman, whose family built Huntsman Corporation into a global chemicals empire, said the jump in gas prices fuelled by the Iran conflict was "another nail in the coffin" for European heavy industry.

"If today's economics were to stay in place for the next three months, I would shut down my [UK] facility and I'd be importing product from China or the United States," he said.

The factory in Wilton, Teesside, employs about 80 people and makes aniline, a chemical used in products including car seats and aircraft components. It is one of the last surviving plants of the former Imperial Chemical Industries, Britain's largest manufacturer for much of the 20th century.

"Four years ago, my lowest-cost aniline in the entire world came from the UK," Huntsman said. "That's how recently I was competitive. Right now, this week, it is the most expensive."