Despite “in-depth” negotiations with the government, the largest bioethanol factory in the United Kingdom must conclude due to the British-American trade agreement, according to the firm that owns it.
The consultations began with the more than 160 employees on the Ververgo’s Hull site, with all the manufacturing to stop on September 13 if no funding is agreed with the government, said the company.
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The factor of the factory is attributed to recent agreement Between the United States and the United Kingdom, which allowed American ethanol without a price to enter the United Kingdom.
The agreement has “undermined” the commercial viariergo viability, said Primark’s parent company, British Foods Association (ABF) concerning its Bioéthanol activity.
“The situation was considerably aggravated by the United Kingdom’s trade agreement with the United States,” he said.
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What does the British-American trade agreement involve?
Unless the United Kingdom finances the company’s short-term losses and offers a longer-term solution, Vivergo will close after the staff consultation and its contractual obligations are fulfilled.
“Uncertain” discussions
The government has embarked on formal negotiations on a sustainable solution, said ABF in a regulatory update, but the result is uncertain.
Following this uncertainty, the consultation staff on “an ordered period” takes place at the same time.
“In -depth” discussions had already been underway with the government in order to find a “financial and regulatory solution” so that Vivergo can operate on a “profitable and sustainable” basis.
He had set a deadline on Wednesday for this solution to be delivered, said the update.
Bioethanol is a renewable fuel made from plants. Vivergo makes wheat fuel.
In exchange for the United Kingdom accepting to allow American ethanol to enter without a price, the United States said it reduce prices On imports of British cars and steel.
In response to the news, a government spokesman said: “We recognize that it is a worrying moment for workers and their families and it is disappointing to see this announcement after having concluded negotiations with the company on financial support yesterday.
“We will continue to take proactive measures to meet the long -standing challenges of the company and remain determined to work in close collaboration with them throughout this period to present a plan for a path to follow which protects the supply chains, jobs and means of subsistence.”