The UK’s largest bioethanol producer, Vivergo Fuels, has hosted an open day with its Saltend Chemical Park neighbours as the plant’s potential closure looms.
The company fears their Saltend site may soon be forced to close as a result of the recent US-UK trade deal. The deal, which was announced in May, included the removal of the 19 per cent tariff on ethanol imports from the US. This, Vivergo say, will make it impossible for them, and other UK bioethanol firms, to compete with the cheaper, and less regulated US imports.
In the months that have followed, Vivergo have campaigned for Government intervention to support their industry, with a number of high profile local politicians having supported their call for action. This has included visits to the site by both the Mayor of Hull and East Yorkshire, Luke Campbell, and the local MP, Graham Stuart.
In a bid to put forward a unified call for action, Vivergo and px, the owners of Saltend Chemicals Park, organised an open day to explain the impact that the closure of Vivergo would have on the wider Saltend site.
Ben Hackett, the Managing Director of Vivergo, and Patrick Pogue, px’s Group Director for Growth and Innovation, spoke of how the chemical park works as an integrated block, meaning the loss of Vivergo would be felt by the entire park, which consists of eight major manufacturing businesses.
Vivergo Fuels claim that by essentially handing over the UK’s domestic bioethanol industry the US, the country’s energy security is weakened and hundreds of high quality jobs are put at risk. As it stands, the last wheat deliveries are set for the end of this month.
(Image: Donna Clifford/HullLive)
Mr Pogue explained that at Saltend there are several billions of pounds of assets that all work together in an “integrated cluster.” He warned of the potential domino effect the loss of Vivergo could have on the rest of the site as investor confidence in the region could be hit by the closure of the bioethanol plant.
In response to Vivergo’s announcement that the plant may face 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 last month.
“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.”
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