The biggest bioethanol factory in the UK to be closed after the US trade agreement

The largest bioethanol factory in the UK will be closed, the owner said, after the government decided not to offer the completion of emergency funding to the factory that struggled after months of full negotiations.

Vivergo Fuels has been locked in talks about his future with the business department since June, after warning the elements of the British-US trade agreement, financially operations cannot be done.

But in a statement on Friday, ABF’s company said the factory would not be able to continue the operation after the government confirmed that it would not “support businesses that would be profitable under a reasonable regulation”.

The top brass factory holds the Starmer administrative decision to eliminate the 19 percent tariff on Bioethanol imports from America which is responsible for its closure, saying that it has opened the British market to cheaper fuels produced in a larger amount in the US.

US trade agreement

As part of the Trade Pact agree with the US in June – Starmer and Business Secretary Jonathan Reynolds allowed greater US access to the British agricultural sector in return for reducing tariffs applied by Trump on automotive, steel and aluminum exports.

Tariffs on US beef are lowered in addition to reducing the task of bioethanol trade, fuel derived from wheat and other cereals produced by fertile farmers.

ABF Sugar, the bioethanol arm of the ABF conglomerate registered in London, immediately warned that the provisions of the agreement had made the Vivergo factory not sustainable, and shortly after entering an emergency discussion with the government about his future.

The government’s decision not to support the group with emergency funds emerged after spending a few deadlines set by Vivergo for negotiations, when both parties tried to achieve a settlement.

But the business department was confirmed on Friday that they would not issue an emergency loan or grant for the factory.

A spokesman said: “We have been working closely with the company since June to understand the financial challenges they faced over the past decade, and have made difficult decisions not to offer direct funds because they will not provide value for taxpayers or solve long -term problems faced by the industry.”

AM City Understanding that the factory was not profitable since 2011, and that the government assigned a report from an independent consultant, which assessed that saving the factory would not be an effective use of taxpayers.

But the decision is likely to cause dozens of loss of work. It can be understood that some of the 160 factory staff will be given work elsewhere in ABF, but the closure will mean others are released.

Vivergo warned that it would also have consequences for “thousands of people whose livelihoods depend on [its] Supply chain “. Bioethanol acts as floor to the wheat market, and its waste products are often used as animal feed.

“We have struggled for months to keep this factory open. We initiated and led talks with the government with good faith,” said the company’s spokesman.

“We present a clear plan to return Vivergo to profitability within two years under the policy lever that has been in harmony with the government’s own green industry strategy.”

He added: “In making this decision, the government has discarded billions of growth potential in humber and sovereign skills in clean fuel that have the opportunity to lead the world.

“A very significant investment lined up to enter the area, from ABF and other companies. Work in clean energy will now move abroad – especially to the US but also to other countries with a more reasonable environmental environment.”