D1 Oils begins staff consultations, blaming subsidised US biodiesel imports

The listed biodiesel refiner and developer D1 Oils plc announced on 7th March that it was continuing to review its downstream refining and tradi. ng operations, at both its Middlesbrough and Bromborough refining plants, in the context of imports of heavily subsidised biodiesel from the US (¡®B99¡¯). As part of this ongoing review, D1 announced that it had commenced a consultation process with employees at both sites.
 
Elliott Mannis, D1 Oils plc¡¯s CEO, said: ¡°The decision to begin consultations with employees is not one we have taken lightly. Imports of heavily subsidised biodiesel from the US, so-called B99, have eroded margins to the point where we have no choice but to consider how to reduce operating costs. We are taking this action in order to manage the business proactively in a difficult market.¡±
 
Reporting on the announcement, Saturday¡¯s Guardian newspaper said Mr. Elliott had confirmed that 35 of about 120 employees¡¯ jobs could be affected, and that DI¡¯s share price had falled by 36p to 62p at the end of trading on 7th March.
 
Mr. Mannis told the paper¡¯s reporter that the EU was trying to negotiate with the US over biodiesel export subsidies, and would take the case to the WTO, but he felt it was unlikely that the US would end subsidies to farmers during an election year. B99 is both subsidised in the US and tax-exempt on import to the UK, with, says the Guardian, the effect that it costs about $1,200 per tonne against a current $1,400 per tonne of soya beans which costs $150 to process in the UK.
 
The Government has committed to reaching an EU renewable road transport fuel target of 2.5% in the coming fiscal year.
 
D1 Oils runs a joint venture with BP to plant jatropha trees as a non-food biofuels feedstock, a project not affected by the erosion of UK refining profitability.
From: auto industry.uk/news

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