The Mayor of Hull and East Yorkshire, Luke Campbell, is said to be ‘very disappointed’ following the news that Vivergo Fuels is set to close. The plant, which is the largest bioethanol producer in the UK, announced its closure last week, on August 15.
Following the announcement of the US-UK trade deal earlier this year, Vivergo Fuels sounded the alarm saying the deal could destroy the UK’s bioethanol industry. The deal included the removal of a 19 per cent tariff that had been in place on ethanol imports entering the UK from the States. Vivergo argued that without the tariff, they would be unable to compete with the cheaper and less regulated American products.
Concerned for their plant and their industry as a whole, Vivergo began to campaign with the aim of influencing the Government to intervene and save the domestic bioethanol industry. Their efforts included open days, travelling to Westminster, and teaming up with their fellow Saltend Chemicals Park companies to show a united front.
Last week Vivergo’s hopes were shattered as the Government announced it would not be intervening to save the industry. The Government said their decision had been made in the national interest and that providing direct funding “would not provide value for the taxpayer or solve the long-term problems the industry faces.”
Following the Government’s announcement, Associated British Foods (ABF), who own Vivergo, soon announced a closure process for the Saltend plant. In a statement, ABF said: “The Government has decided not to offer either short-term financial support or the long-term regulatory certainty we sought. Given these circumstances and the financial losses already incurred, ABF has therefore determined in the interests of its shareholders that it cannot continue to support Vivergo.
“ABF will start an orderly closure process immediately. Vivergo will have ceased all production of bioethanol and animal feed by 31 August 2025.”
The Mayor of Hull and East Yorkshire, Mr Campbell, was one of the many local politicians who supported Vivergo’s campaign in recent months. He visited the site in June to find out more about the process and to show support to the workers. Upon his visit he said the closure of the plant would be “detrimental to the area,” and he urged the Government to intervene to prevent a loss of jobs in the area.
Following the news that the site is to now to close, the Hull and East Yorkshire Combined Authority (HEYCA) has said: “The Mayor was extremely disappointed to hear the news that Vivergo Fuels’ bioethanol production plant in Hull is to close. He has been very public in his support of the workers at Vivergo Fuels and has lobbied hard to try to save the plant and the jobs of the people who work there. It is hoped that a long-term solution can be found to keep this plant, which is of both regional and national significance, operational, to keep the people who work there in jobs, and the other regional businesses who serve the plant’s supply chain viable.”
By: Andrew Spence, LDRS
