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Vivergo Begins Layoffs After UK Rejects Bailout, With Production to End August 31

The move follows tariff cuts that opened the door to cheaper US ethanol.

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Overview

  • About 60 employees are receiving redundancy letters on Tuesday, with phased departures to follow as the Hull plant winds down.
  • The company says all bioethanol and animal‑feed output will cease by August 31, with roughly 160 jobs gone by year‑end and the site readied for demolition.
  • Ministers said direct funding would not offer value for taxpayers or solve long‑term issues, while Vivergo had been losing about £3m a month partly due to high energy costs.
  • Vivergo and other producers blame the removal of a 19% tariff under the UKUS trade deal for allowing cheaper American ethanol to undercut UK output, as the government points to wider gains for sectors like autos and aerospace.
  • FOI‑released letters show ABF chief George Weston pressed the prime minister to intervene, while unions and local politicians decried the closure and Ensus warned its Teesside plant also faces risk.