Vivergo Fuels is “extremely pleased” to have entered the next phase of negotiations with the Government over the future of the at-risk Saltend bioethanol plant and insisted “closure is not a certainty”.
The facility, located at Saltend Chemicals Plant, east of Hull, has warned it will cease operations by mid-September if the Government does not step in and started a consultation process.
The plant’s troubles have come as a result of the US-UK trade deal that was first announced in May and includes the removal of the 19 per cent tariff on ethanol products imported from United States. Vivergo Fuels has warned this will make the UK bioethanol industry unable to compete with cheaper US imports.
In recent weeks and months, the firm’s campaign for government intervention has caught the attention of regional politicians from across the political spectrum including Hull and East Yorkshire’s Mayor, local MPs and council leaders.
The Government has now confirmed that negotiations have commenced regarding the site’s future.
Vivergo’s parent company, Associated British Foods (ABF), has described this as a “positive step forward.” An ABF spokesperson said: “We are extremely pleased to be entering the next phase of formal negotiations with Government over the future of Vivergo.
“We believe it is a very positive signal that Government recognises the strategic importance of a domestic bioethanol industry, and is serious about working with the sector to find a sustainable long-term future. We look forward to engaging intensively and constructively with ministers over the coming weeks.
“In parallel, we have entered into a consultation process with our employees – a necessary step given there can be no guarantee that the negotiations with Government will be successful. Our employees are our most important consideration, and we will engage with them properly and transparently about the future. Consultation is not a fixed outcome – and closure is not a certainty.
“The outcome depends on the progress we are able to make through negotiations with the Government. Our goal is for that outcome to be positive.”
In response to the plant’s potential September closure, a Government spokesperson said: “We recognise this is a concerning time for workers and their families and it is disappointing to see this announcement after we entered into negotiations with the company on financial support on Wednesday.
“We will continue to take proactive steps to address the long-standing challenges the company faces and remain committed to working closely with them throughout this period to present a plan for a way forward that protects supply chains, jobs and livelihoods.”
By: Andrew Spence, LDRS
