Food giant threatens to close UK biofuel plant after US tariff deal
Summary
Associated British Foods plans to shut down a bioethanol plant in Hull unless the UK government provides financial support. The closure threat follows a US trade deal that lowers tariffs on US ethanol exports to the UK, affecting local businesses.Key Facts
- Associated British Foods owns the Vivergo bioethanol plant in Hull, UK.
- The UK government made a trade deal with the US to remove a 19% tariff on ethanol imports and replace it with a duty-free quota of 1.4 billion liters.
- The Vivergo plant is the largest bioethanol facility in the UK.
- Another UK bioethanol plant, Ensus in Teesside, also expressed concerns about the deal's impact.
- US ethanol exports to the UK can now enter without tax, which impacts UK companies.
- Associated British Foods has set a deadline of 25 June for government support.
- The company plans to start talks with its 150 employees for an orderly shutdown if support is not secured.
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