Firm fears US trade deal will prove fatal

REDCAR-BASED Ensus fears the “imminent” closure of its plant as a result of the trade deal between the USA and the UK.

- By DANIEL HODGSON Local democracy reporter

The biofuels manufacturer has said that the decision to allow the USA to export 1.4bn litres of bioethanol to the UK tariff free has fundamentally undermined its business position. The company says “crisis talks” took place in May, with the company’s chairman now saying the Government needs to find a solution to solve a problem of its own making.

The Tees Valley Mayor has penned a joint letter to the Prime Minister on the matter, with his East Yorkshire counterpart. Meanwhile, Redcar’s MP has said that the Government is creating a package to support the industry through what she describes as a “transition period”. On their part, the Government said that the deal agreed with the USA will save thousands of UK jobs, adding that they are working closely with the bioethanol industry.

Ensus employs more than 100 people at its plant on the Wilton International site, with a supply chain of around 3,000 people in firms throughout the North in sectors including agriculture, transport, product storage and energy supply. The company explains that they can produce up to 400m litres of bioethanol, “a sustainable component in petrol”, each year from wheat supplied by British farmers.

In addition, there are by-products from the process, including high protein animal feed. This is sold back to farmers, “effectively preventing them from having to expensively import soya and other unsustainable forms of protein to boost the protein content of their feeds”, according to Ensus.