The owner of the under threat Vivergo Fuels says it is a positive signal the Government has opened up new talks, just hours after it said the Hull plant could close within weeks.
Associated British Foods (ABF) has said it is beginning a consultation with staff to wind down the bioethanol factory, which employs more than 160 people and has been threatened by the recent 海角视频-US trade deal. The group says it cannot continue to absorb losses at the plant, in the face of the removal of a 19% tariff on US ethanol imports.
A spokesperson said: "We are extremely pleased to be entering the next phase of formal negotiations with Government over the future of Vivergo. We believe it is a very positive signal that Government recognises the strategic importance of a domestic bioethanol industry, and is serious about working with the sector to find a sustainable long-term future. We look forward to engaging intensively and constructively with ministers over the coming weeks.
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"ABF cannot continue to absorb losses at the plant. That is why a timely solution is vital. Our clear preference is to find that solution through this process and to get back to running a business that can thrive in the long term.
"In parallel, we have entered into a consultation process with our employees - a necessary step given there can be no guarantee that the negotiations with Government will be successful. Our employees are our most important consideration, and we will engage with them properly and transparently about the future. Consultation is not a fixed outcome - and closure is not a certainty. The outcome depends on the progress we are able to make through negotiations with the Government. Our goal is for that outcome to be positive."
ABF went on to say it wants to keep Vivergo operating and has invested hundreds of millions of pounds into the business which is said to be the 海角视频's largest bioethanol and 海角视频’s largest single production site for animal feed, with 4,000 jobs said to be indirectly supported in the Humber and Lincolnshire region.
Bosses pointed to a £1.25m memorandum of understanding agreed with Meld Energy in recent days, to anchor a sustainable aviation fuel facility at the site. It said there is a "real opportunity for Hull to be home to one of Britain’s most exciting clean fuel clusters".
Following ABF’s announcement of a potential shutdown by mid-September, a Government spokesperson said on Thursday: “We recognise this is a concerning time for workers and their families and it is disappointing to see this announcement after we entered into negotiations with the company on financial support yesterday.
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“We will continue to take proactive steps to address the long-standing challenges the company faces and remain committed to working closely with them throughout this period to present a plan for a way forward that protects supply chains, jobs and livelihoods.”
In recent weeks, Ensus, which runs a bioethanol plant on Teesside, has warned it also faces imminent closure unless the Government can address the crisis. Ensus, which employs about 100 people at the Wilton International site and many more in the supply chain, held talks with the Business Secretary in May but has since said it is at the 11th hour.