Brexit-backing Ineos boss confirms new cars will be built in France instead of Wales

Ineos has confirmed its new Grenadier cars will be manufactured in France, not Wales as had been hoped.

The chemical conglomerate, controlled by prominent Brexit supporter Sir Jim Ratcliffe, said it will build the vehicles at the former Mercedes-Benz factory in Hambach, Moselle, following a deal with the German carmaker.

Production of a new vehicle inspired by the Land Rover Defender was due to begin in Bridgend next year, creating around 500 jobs once production reached full capacity.

The plant would have been built next to the Ford engine plant at Bridgend, which recently closed with the loss of 1,700 jobs.

Ineos said on Tuesday the French factory was "well located for access to markets, suppliers and automotive talent".

Sir Jim said: "Hambach presented us with a unique opportunity that we simply could not ignore: to buy a modern automotive manufacturing facility with a world-class workforce.

"Ineos Automotive set out a vision to build the world's best utilitarian 4x4, and at our new home in Hambach, we will do just that."

The site currently builds electric vehicles, which Ineos will continue to produce, but the move is expected to be a bitter blow for Wales.

After Ineos rowed back on its commitment to Bridgend in July, hinting that it may site production in France, the Welsh government said would look to recoup the "significant time and money" it had invested in courting the company.

Following Ineos’ latest announcement, Chris Elmore, MP for Ogmore in Bridgend, tweeted the decision was a "hammer blow" for the area.

He wrote: "The highly-skilled and dedicated workforce in Ogmore, Bridgend and surrounding areas would have risen to the challenge. 

"That Brexit is clearly a major factor at play is a bitter pill to swallow. Ineos owner Sir Jim Ratcliffe was a vocal Brexiteer, loudly proclaiming the benefits of leaving the EU. Today, we can see his claims are as hollow as his promises."

Ineos’ founder, whose wealth is estimated at £12bn, officially moved his tax residence from Britain to Monaco earlier this year.

He had billed his venture into car production as a boost for the industry in the UK and was handed £150,000 in government funding for green for the project as part of a competition to develop zero-emissions vehicles.

Sir Jim, whose personal fortune is estimated at £12.2bn, has previously lobbied the government to reduce green taxes and slash restrictions on fracking – the controversial method of extracting fossil fuels in which Ineos has heavily invested.

Shadow business secretary Ed Miliband said: "It's crushing news the Grenadier car will now be built in France rather than Bridgend, especially following the closure of Ford's plant leading to scores of highly-skilled jobs lost.

"Boris Johnson's dithering, delay, and failure to deliver appears to have led to the loss of two major employers in the area - and it's devastating that communities in Wales will pay the price of his incompetence.  

"It's also a big betrayal of the promises made by the Conservatives during the election to deliver jobs and investment in Bridgend."

Car manufacturers are among those set to be hardest hit by Brexit with a no-deal outcome particularly damaging for the industry which relies on just-in-time delivery of thousands of parts from the EU.

Nissan has said that its plant in Sunderland will not be viable if Boris Johnson’s government fails to agree tariff-free access. The Japanese car maker employs around 7,000 people at its factory where it has built more than 10 million cars since 1986.