The future of a hundred chemical jobs on Teesside and many more in the supply chain are in doubt after a major fuel plant announced plans to pause production.

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Credit Teeside Gazette

CropEnergies has announced the Ensus bioethanol plant, in Wilton, near Redcar, will temporary close at the end of November.

No date has been given for when work may resume but none of the 80 workers who are based at the plant or the firm's office in Yarm, near Stockton, are facing redundancy at this stage.

The plant currently supports around 2,000 jobs in the supply chain across Northern England.

The decision to pause production has been made due to a fall in ethanol prices.

Redcar MP Anna Turley said: “This is extremely disappointing news and shows yet again how jobs and investment in the bioethanol industry and agriculture are at risk because the government have failed to deliver on the promises they have made to support E10.

“It has been more than three years since the Department for Transport recommended doubling the amount of ethanol in fuel but we are no closer to seeing the legislation to make it happen.

"Dithering ministers have held the growth of the industry back and investment is now being pulled. They need to get a grip and support this next generation industry.”

Mayor Ben Houchen said: “This is obviously a worrying time for workers at Ensus this close to Christmas.

"I am meeting company directors next week to discuss what urgent help we can offer.

“Ethanol plants across the globe are under extreme pressure due to a huge oversupply in the market.

"Facilities from Italy to the US have also had to cease production as well. While the Government can’t control global commodity prices, they can hurry up and deliver what they promised to and double the blend of ethanol in petrol to 10 per cent.

“A Government consultation on this ended in September, and I’ll be writing to the Transport Secretary today to demand swift action. We can’t keep twiddling our thumbs when people’s livelihoods are at risk.”

A spokesperson for CropEnergies said: "CropEnergies has adjusted its outlook for the current financial year 2018/19 due to ethanol prices – both spot and forward prices – which have significantly fallen in the last few days contrary to all expectations.

"Due to the difficult market conditions, CropEnergies will pause production in its plant in Wilton, UK, from the end of November 2018 on."

Bosses at the factory warned earlier this year ethanol prices could come in lower over the next 12 months, which they believe could restrict operating profit.

The firm uses wheat to create bioethanol that is added to petrol, and the remaining protein and grain from the petrol process is used to make animal feed and carbon dioxide for the soft drink and food markets.

Ensus has also been forced to pause work for a number of months multiple times in recent years to improve the factory’s reliability after falling prices and oil’s sluggish value forced the firm to cut jobs.