British Bioethanol Industry Faces Closure Amid Trade Deal Concerns
Associated British Foods is considering closing its northern England bioethanol plant, citing government inaction on mitigating new trade deal impacts. The deal reduces UK tariffs on U.S. ethanol to zero, impacting domestic operations. Consultations with employees have started, but closure remains likely.
Associated British Foods has announced it may close its bioethanol plant in northern England if government support is not forthcoming. The company seeks immediate financial aid to counteract the challenges arising from the recent U.S.-UK trade agreement.
This trade deal, established under former U.S. President Donald Trump, will abolish the UK's 19% tariffs on American ethanol, effectively offering a 1.4 billion-litre import quota. This figure mirrors the UK's entire current ethanol market, posing a significant threat to local producers.
The company has begun consultations with employees to initiate an orderly shutdown process, while pushing for negotiations with the government. Without both immediate financial assistance and a sustainable long-term strategy, the closure of the plant is imminent, AB Foods warns.
(With inputs from agencies.)
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