Associated British Foods has announced the closure of Vivergo, its UK bioethanol production plant in Hull, which also produces animal feed for UK farms.

The decision to close the plant follows extensive discussions with the UK government to find a regulatory and financial solution that would enable Vivergo to operate on a profitable and sustainable basis.

“The government has decided not to offer either short-term financial support or the long-term regulatory certainty we sought,” according to a statement.

“Given these circumstances and the financial losses already incurred, ABF has therefore determined in the interests of its shareholders that it cannot continue to support Vivergo. ABF will start an orderly closure process immediately. Vivergo will have ceased all production of bioethanol and animal feed by 31 August.”

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