Primark owner warns of potential closure of East Yorkshire bioethanol plant

Associated British Foods (ABF), the parent company of Primark, has announced it may shut down its Vivergo bioethanol plant in Saltend, near Hull, placing around 150 jobs at risk.

The multinational food, ingredients and retail conglomerate said it is in discussions with the government in an effort to safeguard the facility, which has suffered recent financial losses after scaling back production due to falling bioethanol prices.

The Vivergo plant, which produces bioethanol for E10 petrol—a fuel introduced in 2021 to reduce carbon emissions—has been struggling amid challenging market conditions. E10 contains up to 10% bioethanol and is widely used across the UK.

In addition to fuel, the plant also manufactures animal feed as a by-product of the bioethanol process.

ABF stated that current regulatory approaches are threatening the plant’s commercial viability. While it is engaged in “constructive discussions” with government officials, the company cautioned that a positive outcome is not guaranteed.

“If necessary, we will mothball or close the Vivergo plant,” a spokesperson confirmed.