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Redundancies begin at UK's largest bioethanol plant
Redundancies are to begin on Tuesday at the UK's largest bioethanol plant, which is to close after the government refused to offer the owners a bailout.
Around 60 staff, just over a third of the total, are to receive redundancy letters on Tuesday and leave the site. The remaining workers will go in phases over the coming months, as part of an orderly wind-down of the business.
On Friday, owners Vivergo Fuels, a subsidiary of Associated British Foods (ABF), said the government's decision not to offer financial support to the facility in Lincolnshire was "deeply regrettable" and blamed the UK's trade deal with the United States. The plant converts wheat into bioethanol, a component of petrol used to reduce carbon emissions.
The facility was already losing £3m a month, partly due to high energy prices. But now the company has also been left competing with cheaper imports after the 19% tariff on American bioethanol was scrapped following the recent UK-US trade deal.
Vivergo described the government's decision not to offer financial support as "a flagrant act of economic self-harm that will have far-reaching consequences.
Amir Nisi
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