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Workers 'in limbo' as Vivergo Fuels plant takes final delivery | Workers 'in limbo' as Vivergo Fuels plant takes final delivery |
(about 5 hours later) | |
Stacey Monkman says it is difficult to maintain morale on the site | Stacey Monkman says it is difficult to maintain morale on the site |
At a fuel plant near Hull, 20 tonnes of wheat are being poured from a lorry into storage, ready to be turned into ethanol – a type of alcohol that is blended with petrol to reduce carbon emissions. | |
But this week's delivery, grown in the fields of Lincolnshire, is the last one on order for Vivergo Fuels. | But this week's delivery, grown in the fields of Lincolnshire, is the last one on order for Vivergo Fuels. |
The owners of the UK's largest bioethanol plant, at Saltend, say its future is in doubt following a government decision to end a 19% tariff on US imports of the fuel as part of the recent UK-US trade deal. | The owners of the UK's largest bioethanol plant, at Saltend, say its future is in doubt following a government decision to end a 19% tariff on US imports of the fuel as part of the recent UK-US trade deal. |
Last month, Vivergo, which is owned by Associated British Foods (ABF), began consulting staff about shutting down the plant due to the uncertainty. | Last month, Vivergo, which is owned by Associated British Foods (ABF), began consulting staff about shutting down the plant due to the uncertainty. |
Managers are calling for financial help from ministers. Without it, they say production at the site – which employs more than 160 people – may halt before 13 September. | Managers are calling for financial help from ministers. Without it, they say production at the site – which employs more than 160 people – may halt before 13 September. |
They estimate about 4,500 jobs in the supply chain will be affected, including the farmers who grow the wheat and the truck drivers who transport it. | They estimate about 4,500 jobs in the supply chain will be affected, including the farmers who grow the wheat and the truck drivers who transport it. |
The government says it is in formal discussions with the company and wants to find "a way forward that protects supply chains, jobs and livelihoods". | The government says it is in formal discussions with the company and wants to find "a way forward that protects supply chains, jobs and livelihoods". |
Nick Smalley oversees production at the Vivergo plant | Nick Smalley oversees production at the Vivergo plant |
Stacey Monkman, who has worked at Vivergo for three years in the commercial and logistics departments, says it has been difficult to keep up morale. | Stacey Monkman, who has worked at Vivergo for three years in the commercial and logistics departments, says it has been difficult to keep up morale. |
"We're motivated because we've still got our jobs to do, but it's very unsettling. | "We're motivated because we've still got our jobs to do, but it's very unsettling. |
"Being in limbo and waiting, not knowing which way it's going to go, it's hard," she says. | "Being in limbo and waiting, not knowing which way it's going to go, it's hard," she says. |
"We've all got families, we've all got bills to pay... a lot rides on it for us." | "We've all got families, we've all got bills to pay... a lot rides on it for us." |
Production manager Nick Smalley began as an apprentice and now manages about 65 people at the refinery. | Production manager Nick Smalley began as an apprentice and now manages about 65 people at the refinery. |
"It's really frustrating that these decisions are being made and we have no influence over them," he says. | "It's really frustrating that these decisions are being made and we have no influence over them," he says. |
"I care deeply about the team that I have here, I want a bright future for all of those people. We really need quick action now, it's getting to crisis point." | "I care deeply about the team that I have here, I want a bright future for all of those people. We really need quick action now, it's getting to crisis point." |
Aghaul boss Mike Green is among suppliers who rely on the site for business | Aghaul boss Mike Green is among suppliers who rely on the site for business |
Production at Saltend had already been cut due to low bioethanol prices, with ABF initially raising the prospect of closure in April. The trade deal followed in May. | Production at Saltend had already been cut due to low bioethanol prices, with ABF initially raising the prospect of closure in April. The trade deal followed in May. |
It is not only Vivergo employees who are affected. The plant buys more than a million tonnes of British wheat each year from more than 4,000 farms and says it has purchased from 12,000 individual farms over the past decade. | It is not only Vivergo employees who are affected. The plant buys more than a million tonnes of British wheat each year from more than 4,000 farms and says it has purchased from 12,000 individual farms over the past decade. |
Farmer Matt Pickering, of Pickering and Sons, near Gainsborough, Lincolnshire, sold the last load of wheat to Vivergo. | Farmer Matt Pickering, of Pickering and Sons, near Gainsborough, Lincolnshire, sold the last load of wheat to Vivergo. |
"We struggle with the quality of our land type, so we tend to go for out-and-out bulk volume shed fillers," he says. | "We struggle with the quality of our land type, so we tend to go for out-and-out bulk volume shed fillers," he says. |
"Vivergo has been a fantastic home for us to sell feed wheat into." | "Vivergo has been a fantastic home for us to sell feed wheat into." |
Meanwhile, Aghaul Limited, which transported the final wheat load to the plant, is among transport companies feeling the blow. | Meanwhile, Aghaul Limited, which transported the final wheat load to the plant, is among transport companies feeling the blow. |
Managing director Mike Green believes the potential loss of the contract will have a significant "knock-on effect" for his haulage business. | Managing director Mike Green believes the potential loss of the contract will have a significant "knock-on effect" for his haulage business. |
"The government needs to have a look at this because it doesn't just affect me, there's a humongous amount of people that it's going to affect." | "The government needs to have a look at this because it doesn't just affect me, there's a humongous amount of people that it's going to affect." |
The Vivergo Fuels site on the north bank of the Humber | The Vivergo Fuels site on the north bank of the Humber |
Ben Hackett, the managing director of Vivergo, describes the plant as a "key foundation on the whole green economy". | Ben Hackett, the managing director of Vivergo, describes the plant as a "key foundation on the whole green economy". |
Removing the tariff on US imports destroyed the market, he argues. | Removing the tariff on US imports destroyed the market, he argues. |
"The customers have gone overnight. That's given us a real crisis. We cannot afford to operate this facility as a loss," he adds. | "The customers have gone overnight. That's given us a real crisis. We cannot afford to operate this facility as a loss," he adds. |
Mr Hackett wrote to growers earlier this year explaining that the plant will only be able to honour existing contractual obligations for wheat purchases while the uncertainty continues. | Mr Hackett wrote to growers earlier this year explaining that the plant will only be able to honour existing contractual obligations for wheat purchases while the uncertainty continues. |
He has urged the government to support bioethanol production by creating a clear framework in order to boost demand, in addition to providing financial help during the transition. | He has urged the government to support bioethanol production by creating a clear framework in order to boost demand, in addition to providing financial help during the transition. |
"We are weeks at most away from Associated British Foods having to make a decision on the viability of the business," he says. | "We are weeks at most away from Associated British Foods having to make a decision on the viability of the business," he says. |
"This site could very well close unless the government takes action." | "This site could very well close unless the government takes action." |
'Way forward' | 'Way forward' |
A government spokesperson said the bioethanol industry had been facing "significant challenges" for some time and ministers were working with Vivergo on a plan to protect jobs and the supply chain. | A government spokesperson said the bioethanol industry had been facing "significant challenges" for some time and ministers were working with Vivergo on a plan to protect jobs and the supply chain. |
Engagement with the companies continued "at pace" and external consultants had been brought in to help. | Engagement with the companies continued "at pace" and external consultants had been brought in to help. |
"We recognise this is a concerning time for workers and their families which is why we entered into formal discussions with the company on potential financial support last month," the spokesperson said. | "We recognise this is a concerning time for workers and their families which is why we entered into formal discussions with the company on potential financial support last month," the spokesperson said. |
"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." | "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." |
Listen to highlights from Hull and East Yorkshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here. | Listen to highlights from Hull and East Yorkshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here. |
Download the BBC News app from the App Store for iPhone and iPad or Google Play for Android devices | Download the BBC News app from the App Store for iPhone and iPad or Google Play for Android devices |
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