A plant producing the chlorine that treats 98 per cent of Britain's drinking water has been rescued from collapse by Jim Ratcliffe's Ineos, in a move that could also spare the UK from becoming reliant on imported salt for the first time in its history.

Ineos Inovyn, the chlorine arm of the billionaire's chemicals empire, said on Friday that it had bought the remaining 50 per cent stake in a Runcorn-based chlor-alkali plant that it did not already own, giving it full control of a site that fell into administration last year. The company said the purchase would help secure a facility that sits at the centre of a wider industrial chain, linking water treatment, salt processing and the production of chemicals used across manufacturing.

The deal, which is expected to complete before the end of 2026, is also likely to help stave off the failure of one of Britain's last remaining salt plants, which neighbours the Runcorn chlor-alkali site and whose operations are interconnected. Earlier this year, Inovyn warned that without government support it might have to shut the Runcorn plant on account of the UK's ballooning energy costs.

Around 98 per cent of the chlorine used to treat Britain's drinking water is supplied by the Runcorn site, Ineos said on Friday, underscoring its importance to the country's chemical production. Salt is also a vital part of the supply chain: chemicals derived from salt are used to purify water and to produce everything from construction materials to plastics and explosives.

Ratcliffe's Ineos did not immediately say whether the transaction removes the need for an injection of taxpayer cash to secure the site's long-term survival.

"This agreement reflects our confidence in the long-term future of the Runcorn site and its skilled workforce," said Ineos boss Stephen Dossett. "Chlor-alkali products are essential to modern life, supporting safe drinking water, pharmaceuticals and healthcare, and the materials that underpin housing and critical infrastructure. This acquisition is an important step in strengthening the UK's national resilience."

Runcorn deal lays bare chemical sector struggles

The deal, which remains subject to regulatory approval, comes amid escalating concern that Britain's industrial base is being hollowed out as a result of the country's persistently high energy costs and carbon taxes. The chemicals industry has been the largest casualty of those sky-high energy costs, shrinking by 20 per cent over the past three years, a decline that has raised questions about the UK’s ability to maintain domestic supply in sectors where continuity matters as much as cost.

The sector's collapse has sparked a chorus of warnings that the UK will become reliant on imports of chemicals that are vital to strategically important industries such as water, food and defence.

The company behind the Runcorn site, known as Vynova Runcorn Limited, was one of several victims of the industry's wider travails and collapsed into administration in December last year. As well as jeopardising roughly half of the UK's chlorine production and processing capacity, the move placed roughly 90 jobs at risk.

Founder Jim Ratcliffe has been an outspoken critic of the UK and Europe's energy policy, branding it "all over the place" in a recent intervention. Industrial energy prices are more than four times more expensive than the US average and roughly double those in the European Union.

Ratcliffe has previously called for the UK's net zero levies to be abolished, warning they were "killing manufacturing". The levies put a tariff onto firms' energy bills to fund the green transition.

"To meet this tax obligation, we will be forced to pause vital investment in projects that were designed to make our operations more efficient and more sustainable," he said.