INEOS confirms change of tax residence to Switzerland
INEOS Capital confirms that it is to move of its headquarters and tax residence from the UK to Lausanne in Switzerland, following the consent of its lenders.
The company’s day-to-day operations both in the UK and elsewhere around the world will remain unaffected by this change.
INEOS has weathered the current recession well. It has stabilised its business, is trading in line with its business plan and its financial performance is expected to improve further over the longer term. The company has estimated that the improvement in financial performance, coupled with current and expected changes in UK tax legislation, will result in significant levels of additional tax being payable by its businesses; money that would otherwise help secure competitiveness and re-investment across its production facilities.
The company estimates potential cash tax savings of around €450m between now and 2014, following the move. A saving would further support investment in skills, plant and technology, considered by the company to be critical to driving future growth and competitive advantage.
INEOS remains committed to its UK operations. It continues investment in the UK as one the countries largest manufacturing companies, employing 3,700 permanent staff and 1000 contractors across eight UK sites; supporting tens of thousands of indirect jobs.
Commenting on the move, Tom Crotty INEOS Group Director said: “This decision is right for our businesses and our sites. We have a duty to ensure we remain competitive long-term in a global marketplace. 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 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 will allow us to increase investment to the benefit of all stakeholders in our business.”
INEOS is an international business employing 15,500 people, across 64 plants in 14 countries. It generates 70% of its revenue outside the UK.
For further information contact:
Richard Longden – INEOS - Tel: +44 (0) 2380 287037