17. Mar 2026
Huntsman warns UK aniline plant could close if energy costs remain high
Huntsman Corporation has warned that its aniline production facility at Wilton on Teesside, UK, could be closed if current energy costs persist, raising concerns about the future of one of the country’s remaining large-scale chemical manufacturing assets.
The comments were made by Huntsman chairman and CEO Peter Huntsman, who said the company could shut the plant if current market conditions continue for several months. The site employs about 80 people and produces aniline, a key intermediate used in the production of methylene diphenyl diisocyanate (MDI) and other chemicals used in polyurethane materials.
He said: “If today’s economics were to stay in place for the next three months, I would shut down my [British] facility and I’d be importing product from China or the US."
Aniline is a critical raw material for polyurethane production, particularly for rigid and flexible foams used in automotive, construction and insulation applications. The Wilton facility is one of the few remaining aniline production sites in the UK and forms part of the historic Teesside chemical cluster developed around the former Imperial Chemical Industries (ICI) operations.
According to Huntsman, the competitiveness of the site has deteriorated sharply in recent years “Four years ago, my lowest-cost aniline in the entire world came from the UK. That’s how recently I was competitive. Right now, this week, it is the most expensive.”
Huntsman said: “You’re not seeing this in China, America or the Middle East, surprisingly, where the war is. You’re seeing it in the EU and the UK, and they’re being hit the hardest.”
The company has not announced a formal closure decision, but the comments highlight the ongoing pressure facing energy-intensive chemical manufacturing in Europe. Industry groups have warned that higher energy prices, carbon costs and global competition have significantly affected the sector’s competitiveness.
Recent data cited by industry sources indicate that European chemical production has declined significantly since 2021, with numerous plant closures across the region linked to energy and operating costs.
Huntsman has already undertaken restructuring measures in recent years, including workforce reductions and the closure of several facilities globally. The company continues to operate chemical manufacturing sites in North America, Asia and the Middle East, regions that currently benefit from comparatively lower energy costs.
The UK government has acknowledged the challenges facing energy-intensive industries and said it is working with the sector to address cost pressures and support long-term competitiveness.
Photo: Huntsman's Wilton plant in Teeside, UK. (Original © Copyright Alan Murray-Rust and licensed for reuse under this Creative Commons Licence. Modified to include Huntsman Logo.)