Bioethanol plant begins shut-down process
Summary
A bioethanol plant in the UK, owned by Associated British Foods, is shutting down and starting to lay off its 160 employees. The UK government decided not to provide financial support to the bioethanol sector, citing increased competition from US imports and long-term industry issues. The closure is part of a response to a UK-US trade deal that lowered tariffs on US ethanol.Key Facts
- Vivergo, one of the two bioethanol plants in the UK, is shutting down.
- The plant is laying off 160 employees, with layoffs starting immediately.
- The UK government decided not to give financial support to the bioethanol industry.
- Competition from cheaper US ethanol imports has hurt the UK bioethanol sector.
- A UK-US trade deal in May removed tariffs on US ethanol, affecting local producers.
- The plant's closure may affect UK farmers who supply non-food-grade wheat.
- Another bioethanol plant in the UK, owned by German firm Ensus, is awaiting government support for its operations.
- The shutdown will also impact CO2 production used in various industries.
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