With the future of the Vivergo plant at Saltend Chemicals Park at imminent risk, negotiations are beginning between Associated British Foods’ bioethanol business and the Government to find a viable path forward.
The concerns come as a result of the recent UK-US trade deal and poor regulation, which have left local ethanol producers less competitive in the face of US imports.
Vivergo Fuels is the UK’s largest bioethanol producer, with a crucial role to play in UK transport decarbonisation.
It is a strategically important anchor employer in the region, supporting over 160 skilled jobs directly and around 4,000 more in the supply chain, the majority of which are based in the Hull and East Riding region.
Now, with the future of the Vivergo plant at risk, the Government has decided to launch formal negotiations with the business. Meanwhile, Vivergo has begun a consultation with employees.
An Associated British Foods spokesperson said: “We welcome the Government’s decision to launch formal negotiations with us over the future of Vivergo, our bioethanol business.
“Over the coming weeks, we will engage intensively and transparently with officials to try to find a viable path forward.
“In parallel, we will today begin consultation with our employees. This process will conclude with a major decision to be made on the plant’s future, which will depend on whether the negotiations deliver a credible route forwards.”
