Releases should start on Tuesday in the largest Bioethanol factory in the United Kingdom, which is to close after the government has refused to offer owners a bailout.
About 60 employees, just over a third of the total, must receive letters of redundancy on Tuesday and leave the site. The remaining workers will go in phases in the coming months, as part of an ordered decrease in the company.
Friday, owners Vivergo Fuels, a subsidiary of Associated British Foods (ABF), said The government’s decision not to offer financial support Installation in Lincolnshire was “deeply regrettable” and blamed the The United Kingdom’s trade agreement with the United States.
The plant converts wheat into bioethanol, a fuel component used to reduce carbon emissions. The installation already lost 3 million pounds sterling per month, partly due to high energy prices.
But now, the company has also been in competition with cheaper imports after the 19% price on American bioethanol has been rebuilt following the recent trade agreement of the United Kingdom.
Vivergo described the government’s decision not to offer financial support as “a blatant act of economic self -control which will have deep consequences”, pushing the sector “to the point of collapsing”.
The company added that the closure would be a “solid blow” to the local area and the supply chain. More than 160 employees on the site, who were consulted on a potential sales process in Junewill be gone at the end of the year, when the factory is ready for demolition.
The factory is also the largest unique production site in the United Kingdom for Animal Food, a by-product of the ethanol production process.
The NFU Union of Agriculture has described imminent closure as a “terrible news” for workers who will lose their jobs, but also “thousands of people whose livelihoods depend on this supply chain”.
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The company, near Hullwarned earlier this year that he was in financial difficulty while crisis talks continued with the government.
In a statement, the government said it had made the “difficult decision not to offer direct funding because it would not provide value to the taxpayer or not solve the long -term problems with which the industry is confronted”.
But Unite, Secretary General, Sharon Graham, described the “Myopic” government’s decision while the GMB Charlotte Brumpton-Childs union blamed “the impact of trade and trade agreements” for “workers losing their livelihoods”.