The leader of Hull City Council has called for Business Secretary Jonathan Reynolds to intervene to rescue the UK’s largest bioethanol plant.
Vivergo Fuels has warned that, if the Government does not act, it might have to shut down its Saltend facility – a direct employer of 160 staff – following the axing of a 19 per cent tariff on imported US ethanol, which formed part of the recent UK-US trade agreement.
Councillor Mike Ross, leader of Hull City Council, claimed the plant is being “sacrificed on the altar of a deal with Donald Trump”.
Cllr Ross highlighted Vivergo’s role in not only providing direct employment, but also in sustaining a wider economic network in the Humber area, including agriculture partners who supply wheat for production.
He said: “The Government needs to stand up for workers in Hull and our region. The Vivergo plant is vital for jobs and our economy, but has been left in the lurch, sacrificed on the altar of a deal with Donald Trump.”
Addressing what is at stake, he added: “Its closure would be a devastating blow to families, communities and businesses across our region – and would send entirely the wrong message about the Government’s commitment to clean growth, green jobs and investment in places like Hull.
“The Government promised to act within days, but so far it’s been silent. They must salvage this plant from destruction by Trump. That’s why I’m urging the Business Secretary to hold a summit with regional leaders, and our new mayor to help make that happen.”
(Image: Ed Robinson/OneRedEye)
In a recent letter penned to farmer suppliers, Vivergo Fuels managing director Ben Hackett said: “Unfortunately, if there is no Government intervention in the next few weeks, our plant will have to close. That is because the Government has made a series of decisions that undercut UK ethanol production in favour of US imports. The most recent trade deal was the final blow. If there is no Government intervention, we will not be able to purchase any more wheat outside our current, limited, commercial commitments.”
He added: “This is avertable. If the Government provides sufficient policy certainty to us in the long term and ameliorates the effects of their decisions in the short term, we can continue to operate and expand production. But so far, they have made no commitments.”
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.”
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