Associated British Foods (ABF) is warning that its Vivergo bioethanol plant in East Yorkshire may be mothballed or closed, putting around 150 jobs at risk. The move follows sustained losses and production cuts caused by falling bioethanol prices.
The Vivergo facility, located in Saltend near Hull, converts UK-grown wheat into bioethanol fuel and animal feed. It was launched in 2007 but now faces operational uncertainty amid concerns over how UK biofuel regulations are being applied.
ABF is currently in discussions with the UK Government, seeking regulatory support to maintain commercial viability at the site. However, the company has indicated there is no guarantee of a resolution and may proceed with closure if market conditions fail to improve.
The situation coincides with a broader earnings decline at ABF. Pre-tax profits fell by 21% to £692 million in the 24 weeks to March 1, with revenues down 2% to £9.5 billion. Its sugar division was notably weak during the period.
