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Sir Jim Ratcliffe’s chemical conglomerate, Ineos, has enacted a company-wide hiring suspension as it emphasizes debt alleviation following years of swift growth and deteriorating market scenarios.
The British-originated organization affirmed a “comprehensive recruiting suspension” while tightening capital expenditures after acquiring assets valued at approximately €2.7 billion across the US, Europe, and Asia between 2022 and 2024.
This action arises as Ineos contends with excess capacity in the chemicals sector, new US tariffs, and declining prices that have pressured margins across its primary operations.
Ratcliffe, 72, who jointly owns Manchester United, has stopped dividend distributions to concentrate on decreasing the group’s €11.1 billion liabilities, aiming to reduce leverage to three times earnings.
The billionaire entrepreneur manages Ineos alongside long-time associates Andy Currie and John Reece through a holding apparatus based in the Isle of Man.
Despite the recruitment halt, Ineos stated it would still hire for “critical” roles to maintain its global workforce of 24,000. Approximately 136 positions remain posted across the group’s 30 business segments covering chemicals, oil, and gas.
Ineos has also reduced capital outlay to preserve liquidity. Nevertheless, it continues to support its multibillion-euro ethylene facility in Antwerp, Belgium — one of Europe’s most significant chemical investments in recent years.
To fund the initiative, the company recently procured €650 million in new debt, reinforcing its long-term belief in the European market despite prevailing challenges.
Global chemical market decline impacts margins
The global chemicals industry’s recession has been intensified by China’s escalating exports, which have surpassed domestic demand and compelled prices downward globally. European manufacturers, conversely, confront higher energy expenses and carbon levies.
Credit rating agencies have responded by downgrading Ineos’s liabilities, cautioning about uncertainty over its debt reduction objectives. Moody’s remarked that the group maintains “leading market positions” and “a well-capitalized asset base” but remains vulnerable to an extended industry downturn.
For the quarter ending 30 June, Ineos reported a pre-tax deficit of €42.9 million, reversing a €291.8 million profit a year prior. Revenues fell to €3.8 billion from €4.4 billion, while net debt remained at €11.1 billion.
The firm indicated market sentiment “stayed weak,” with Asia exhibiting “soft conditions” and European activities impeded by energy and carbon expenses. Ineos has instituted “rigorous controls” on discretionary spending and delayed non-essential initiatives “where feasible”.
Manchester United’s debt adds to Ratcliffe’s financial burdens
Apart from Ineos, Ratcliffe encounters escalating issues at Manchester United, where the club is contending with seven years of losses and £640 million in debt. Numerous jobs have been eliminated as part of a cost-reduction initiative.
After acquiring a 27.7 percent stake earlier this year, Ratcliffe remarked that the club had “lost its way” and was “spending more than it was earning” leading up to his investment.
The billionaire’s dual focus — stabilizing Ineos while reforming one of the globe’s largest football entities — underscores the growing strain across his portfolio as global markets contract and borrowing costs rise.
In spite of the austerity measures, Ineos asserts it remains devoted to its long-term industrial strategy and investment in low-carbon technologies. However, with the chemicals sector slump anticipated to endure until at least 2027, analysts indicate Ratcliffe faces a protracted period of financial prudence.
As one of Britain’s wealthiest industrialists, his ability to navigate both Ineos and Manchester United through this tumultuous phase will be closely monitored by markets and investors alike.
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