Fuel plant closure ‘devastating’ for workers

The closure of the UK’s largest bioethanol plant is “devastating” news, regional politicians have claimed.

Vivergo Fuels in Saltend, near Hull, previously warned it would not be able to compete with cheaper products from the US following the government’s decision to end a 19% tariff on imports.

The firm, which produces bioethanol and animal feed, had asked ministers to intervene but the government said funding the industry “would not provide value for the taxpayer”.

Beverley and Holderness MP Graham Stuart described the closure as “devastating news for everyone who works at Vivergo and in its supply chain”.

MP for Hull West and Haltemprice Emma Hardy said she has spoken to officials to ask that “swift and effective support will be made available to those who need it”.

Hull City Council leader Mike Ross said he was “appalled” but “not shocked” that the government had “failed to act to protect these workers”.

“[Vivergo] is a company producing clean fuel and providing decent, well-paid jobs in our region,” he said.

Vivergo Fuels and the Redcar based Ensus previously warned they would not be able to compete with cheaper US products without the tariff, according to the Local Democracy Reporting Service.

Vivergo owners Associated British Foods (ABF) announced on Friday it would cease all production by 31 August.

Its managing director Ben Hackett said: “We did not go down without a fight and I hope that the noise we generated over the past three months will make the government think twice before it decides to sign away whole industries as part of future trade negotiations.”

The government said it had taken the decision in the national interest.

A statement added: “We recognise this is a difficult time for the workers and their families and we will work with trade unions, local partners and the companies to support them through this process.”