Associated British Foods has threatened to shut down one of the two bioethonol plants in Britain, if the government does not receive the state support after the government has a tariff deal with the US.

It said that when the government committed to “formal dialogue”, it would start consultation with 150 employees in its Vivogo bioethaneol business “to impress a systematic wind-down”.

As part of an agreement to cut American tariffs, the government will remove 19% tariff on the import of American ethanol, replacing it with a tax-free quota of up to 1.4 billion liters.

The government said that after entering a conversation with AB Foods on Wednesday, it was “disappointed” to see the announcement after entering the conversation with AB Foods.

VIVERGO BioThanol plant is the largest in the UK. Sole other site Fueling in the UK is on Teside, which is owned by the Sudzukar Group in Germany.

ENSUS also said that it may have to close its site as the UK-US trade agreement “fundamentally reduced its business position”.

Under the tariff deal, the US can export 1.4 billion liters of fuel – equivalent to the UK’s entire ethanol market – duty free, which means that businesses in Britain do not have to pay taxes on purchasing American fuels.

In return, government Secure tariff cut on UK exports to the US including British cars.

AB Foods have been advocating the government for several months about bioathanol, initially about cheap American shipments coming to the UK.

Ethanol can be made sugar beat along with grains such as wheat and corn, and the US is providing subsidy and tax credit to farmers and others that produce fuel.

At its top, the UK government then hit its trade agreement with the US, which removes import duties on American ethanol.

The agreement has been seen as a major victory for farmers in states such as Iowa and Nebraska, the major manufacturer of ethanol and part of the support base of US President Donald Trump in last year’s election.

AB Foods had set a deadline for Wednesday, June 25, which stated to reach an agreement about the support of the government.

But the trade department said that it had entered the conversation with the company that day.

AB Foods stated that the plant would prevent manufacturing before September 13, until the short -term funds of the loss of vivo and a long -term solution were given.

The news of AB Foods came on the same day when the government announced a business plan with the aim of promoting exports and protecting UK firms from cheap imports.

On Wednesday, Labor MP Karl Turner for the plow East said: “There will be a serious obstruction in the ability to reach pure zero of the UK to lose our bioathanol market and destroy communities such as plow in this process.”

The Department of Business is recruiting external advisors to provide appropriate diligence on a plan for Vivrago – if a plan agrees.

Labor promised to spend on advisors in an attempt to save £ 1.2bn by next year.

But it is believed that the government will use external advisors in some cases where rapid and completely analysis is required.

A spokesperson of the Department of Business said: “We will take active steps to face the long -standing challenges in front of the company and will be committed to work together during this period, so that supply chains, jobs and livelihood can be protected.”

The government has said that by 2030, it wants 10% of all the fuel used in the aircraft to come from durable sources, one of which is bioethanol.

If the VIVERGO plant in the site of HULL and ENSUS in Teesside is closed, it will release the UK dependent on foreign suppliers.

Vifergo warns that 4,000 jobs may be affected in the UK bioethonol industry, including farmers that increase wheat that produces fuel.

AB Foods said that on June 11, Vivrago’s wheat purchases stopped.