Closing Bioethanol Plant Highlights Trade Deal Challenges
Associated British Foods plans to close its bioethanol plant in northern England unless the UK government provides financial support. The move, linked to a trade deal with the U.S. lowering tariffs on ethanol imports, could affect thousands of jobs and pressures Prime Minister Keir Starmer's trade strategy.
Associated British Foods is set to shut down its bioethanol plant in northern England by September, contingent on UK government funding. This decision arises following a trade agreement with the U.S., slashing tariffs on American ethanol to zero, potentially making it the UK's first casualty under this deal.
The trade agreement has left both AB Foods and Ensus facing operational challenges. Ensus's bioethanol facility in Teesside is also at risk of closure. AB Foods has initiated employee consultations to wind down operations, seeking urgent financial support from the government to prevent job losses.
The situation is a political test for Prime Minister Keir Starmer, who praised the trade deal as a boon for businesses and jobs. Britain seeks to enhance competitiveness by reducing green levies. AB Foods demands increased ethanol inclusion in petrol and financial aid to sustain the industry.
(With inputs from agencies.)
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