A petition has been launched in support of the Vivergo Fuels bioethanol plant amid warnings it could shut without Government intervention.
Despite the plant, which is at the Saltend Chemicals Park, east of Hull, being the UK’s largest producer of bioethanol and claiming to support over 4,000 jobs either directly or through its supply chain – including 160 jobs at the facility locally – Vivergo has warned that the US-UK trade deal announced earlier this month could lead to the plant’s collapse.
The deal, announced by Prime Minister Sir Keir Starmer and US President Donald Trump, included the removal of the 19 per cent tariff on ethanol imports from the United States which Vivergo claims will result in UK firms struggling to compete with imports from the US.
Earlier this week Vivergo Fuels wrote to its supply chain partners to inform them that it will be scaling back wheat purchases from next month and simply fulfilling its contractual obligations.
In recent days, the leader of Hull City Council, Cllr Mike Ross, has urged the Business Secretary to hold a summit with regional leaders to help save the plant. Cllr Ross added that the closure of the plant “would be a devastating blow to families, communities and businesses across our region”.
Concern has also been raised by David Hooper, the external affairs director for Hull & Humber Chamber of Commerce, who said: “We have worked with Vivergo for years and helped them make their case to the Government, and now we’ve reached another crunch point for the business which employs 160 staff locally because of tariffs.
“Only a few weeks ago, business leaders from many of the Humber’s largest companies met with Energy Secretary Ed Miliband in Hull and left him in no doubt of the urgency for the Government to give the go-ahead for many projects in our region which will unlock more than £15 billion investment and create thousands of jobs.
“We need decisive action from the Government now before these investments go elsewhere – time is running out fast.”
The petition that Vivergo Fuels has launched, calling for government intervention, had been signed around 1,500 times as of 3pm on Friday, May 30.
Vivergo Fuels now plans to take its concerns to the heart of government as representatives from the business are expected to visit Westminster on Wednesday to speak to MPs.
In response to Vivergo’s concerns, a Government spokesperson said: “We signed a deal with the US in the national interest to secure thousands of jobs across key sectors.
“We are now working closely with the industry to understand the impacts of the UK-US trade deal on the UK’s two bioethanol companies and are open to discussion over potential options for support.
“The Business Secretary has met members of the bioethanol sector and senior officials continue to consider what options may be available to support the impacted companies.”
By: Andrew Spence, LDRS
