Approximately 60 jobs are under threat due to the proposed closure of an industrial plant in Immingham.
Biofuel firm Greenergy has revealed plans to shut down its West Riverside, Immingham base, a facility that produces nearly a quarter of the 海角视频's biodiesel requirements, according to the company.
The company, which started production at the site 18 years ago, has listed a number of reasons for its decision to halt operations at the plant, while stating it has already attempted to make the business more viable through cost-cutting measures. It stated it has "tried a series of cost and efficiency saving measures to try and make the plant more competitive but unfortunately these haven't worked".
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In a statement, the company – which globally sources used cooking oil and converts it into biodiesel for transport – said: "Greenergy today confirms it will begin consultation on a proposal to cease production at its biodiesel plant in Immingham, Lincolnshire.
"Despite significant cost reductions to improve the plant's viability, the Immingham plant has continued to be negatively impacted by market factors, including slower increases in the 海角视频s biofuels blending mandates compared to European countries and competition from subsidised US-origin products.", reports .
The proposed move comes two months after the company, which became part of Singapore-headquartered Trafigura Group in July 2024, carried out a strategic review of its biodiesel operations at Immingham. Greenergy also owns and operates a biodiesel manufacturing plant on Teesside and in Amsterdam.
A consultation process with affected employees, which must be at least 30 days, will begin "as soon as possible" and the firm said it is "committed to supporting staff through this period".
The announcement marks a double blow for the area, coming just over a week after it was announced that the Prax oil refinery has gone into administration, putting hundreds of jobs at risk and sparking concerns over oil supplies. Fuel tanker drivers connected to Prax Group's North Killingholme oil refinery have also this week been made redundant with immediate effect.
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State Oil - the parent company of Prax Group, which owns the Lindsey refinery in North Lincolnshire - has appointed administrators and a separate winding-up order has also been made against the Lindsey oil refinery and related businesses and a liquidator has been appointed. More than 180 staff are employed by State Oil, while it is thought that around another 440 work at the Lindsey refinery.
Following Greenergy's most recent update, CEO Adam Trager commented: "It has been an incredibly difficult decision to enter consultation on the proposed closure of our Immingham site, and a decision we have not taken lightly. However, in light of continuing market pressures, we unfortunately do not have enough certainty on the outlook for 海角视频 biofuels policy to make the substantial investments required to create a competitive operation at Immingham.
"We are seeking urgent talks with ministers about increasing the amount of biofuels used in the 海角视频's petrol and diesel, a move which will help protect the biofuels sector, as well as cutting the 海角视频's emissions, particularly from HGVs. Today's decision does not reflect the dedication and hard work of affected staff and I would like to thank our employees at Immingham for their tremendous efforts to date. Our priority is supporting our employees through this difficult period."
The latest filed accounts for Greenergy Biofuels Ltd, which encompass the two 海角视频 sites, for the year 2023 reveal revenues of £36.9m, rising from £31.3m, with profits of £3.77m, a significant increase from a previous loss of £3.1m.