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UK-BASED chemicals giant Ineos is considering moving its headquarters and tax-residence to Switzerland in a bid to save on its tax bill.

Ineos is the third-largest chemicals company in the world and the largest privately-owned company in the UK with a turnover of $47b. However, it says that proposed changes to UK business tax laws would mean it would have to pay significantly higher taxes, which would impact on its competitiveness and re-investment in facilities. Ineos estimates that a move to Switzerland would save €450m ($615m) by 2014.

The company stresses that a move would not affect day-to-day running of the business, and that it remains committed to its UK operations, which employ 3700 permanent staff and over 1000 contractors. Ineos says the savings would enable much higher investment in skills, plant and technology and improve its competitiveness.

Tom Crotty, ceo of Ineos says: “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. Many leading chemical companies have European or global operations resident in Switzerland and we need to compete effectively with them.”

Ineos is now in discussions with its lenders to obtain consent for the move.

A spokeswoman for the UK government’s Department of Business, Innovation and Skills tells tce that they understand the move will only affect around 20 jobs, and that the UK has the lowest corporate tax rate in the G7. She says that business minister Pat McFadden said in parliament today he regrets Ineos’ decision.