A British chemicals giant has warned of the death of the country's industry.

The UK chemical industry is on the brink of "extinction", said Jim Ratcliffe, head of chemical company Ineos, The Times reports.

"We are seeing the disappearance of one of our most important industries as chemical production is squeezed dry," he said after the closure of the company's synthetic ethanol plant in Grangemouth, central Scotland, in early January.

According to the publication, the plant's closure has resulted in more than 500 job losses, leaving the UK completely dependent on imported synthetic ethanol, which is used in the production of a variety of products, from medicines to paints and cosmetics.

Ineos accused the government of lacking an energy strategy and imposing high carbon taxes. "Deindustrializing the UK does nothing for the environment. It simply shifts production and emissions elsewhere. The UK, and particularly the north, needs high-quality manufacturing and the jobs that come with it," Ratcliffe noted.

Founded in 1998, Ineos operates 173 facilities in 32 countries, employing approximately 25,000 people. The company has expanded beyond the petrochemical industry to include oil and gas production and a wide range of other sectors, including automotive, fashion, and sports . Ineos is one of the world's largest chemical producers.

Since 2021, chemical production in the UK has declined by almost 40%, the publication reports. Ten major chemical plants have closed in the country over the past five years.

In the spring of 2022, the UK government introduced a windfall tax on extractive industry profits . Two years later, senior executives and analysts said it had harmed the industry.

Small, independent companies, primarily operating in North Sea fields, complained the most about the tax. They also say they don't benefit from oil price fluctuations due to the Russia-Ukraine conflict, which is primarily the case for large corporations with diversified businesses .

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