INEOS confirms move to Switzerland

London – INEOS has confirmed that it will moving its headquarters and tax residence from the UK to Switzerland, having received consent of its creditors for the move on 24 March. The group had signalled its intention to move its HQ for tax reasons earlier last month.

Changes in UK tax legislation will result in significant levels of additional tax being payable by its businesses and reduce its ability to re-invest in its production facilities, said INEOS, which estimates that moving to Switzerland would provide potential cash tax savings of around €450m between now and 2014.

The move is intended to further support investment in skills, plant and technology, considered by the company to be critical to driving future growth and competitive advantage, according to a group statement. The HQ relocation, it added, would not impact its day-to-day operations, either in the UK or imternationally.

“We have to make a decision that is right for INEOS, our businesses and our sites, to ensure we remain competitive long-term in a global marketplace,” said Tom Crotty CEO of INEOS. “Many leading chemical companies have European or global operations resident in Switzerland and we need to compete effectively with them.

“We remain committed to the UK and our facilities will continue to play an essential part in the long-term growth of INEOS. Investment in people skills, plant and technology is an important element of our ongoing competitiveness and the change of tax residence would allow us to increase investment to the benefit of all stakeholders in our business.”

INEOS employs around 15,500 people, across 64 plants in 14 countries, generating 70% of its revenue outside the UK. It is one of the UK’s largest manufacturing companies, employing 3,700 permanent staff and 1000 contractors across eight UK sites; supporting tens of thousands of indirect jobs.