Fri, 15 Aug 2025

Fri, 15 Aug 2025 Bioethanol layoffs to start next week after rescue ruled out

Plants in Hull and Redcar had warned they would close without support after deal to allow US ethanol to come in tariff-free.

* The UK's largest bioethanol plant, Vivergo Fuels in Hull, will begin closing down operations on Monday after the government declined to offer financial support.
* The company's owner, Associated British Foods, had warned that without government assistance, it would be forced to shut down due to a 19% tariff on US ethanol imports being removed.
* The UK government stated that providing taxpayer funds was not in the "national interest", despite the companies presenting plans to return to profitability.
* Bioethanol industry leaders claim the trade agreement has made their businesses "commercially unviable" and will result in job losses, with 270 employees affected immediately.
* A government spokesperson acknowledged the difficulties faced by workers but stated that direct funding would not provide value for taxpayers or address long-term issues.
* The union GMB criticized the decision, stating that it would cost working people their livelihoods and hinder the development of a green energy strategy in the UK.
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