Biodiesel producing plant in Newarthill set to close with over 70 jobs at risk

A plant producing biodiesel in Newarthill is set to close its doors with the loss of over 70 jobs.

Argent Energy has already entered into a period of consultation with staff, with its future under threat.

Company bosses have cited “market conditions” as the main driving factor, according to a source at the plant near Motherwell.

Rumours started a few weeks ago that the company was closing the plant and fears were exacerbated when staff working there noticed members of the management team seeking alternative employment via social media.

The company claim market conditions have put severe economic pressures on biodiesel production facilities in the UK over the past two years have forced the move.

Argent Energy Group produces second-generation biodiesel made from waste fats and oils. The distilled product can be directly blended with conventional diesel and used as a fuel mainly for road transport.

The company has a plant at Stanlow in Cheshire with its headquarters in nearby Ellesmere Port. It boasts an annual production of 240,000 metric tonnes, which is used to power trucks and buses.

Established in 2001, production began in Newarthill in 2005 with 55,000 tons a year. A few years later they were supplying high bio blends to bus and truck companies. And in 2012 Transport for London first began trialling of Argent’s biodiesel for the city’s buses.

They acquired Amsterdam Biodiesel inn the Netherlands in 2018 and their production and storage facility has the capability of producing 100,000 tonnes. It also features four-lane cleaning facilities for tankers.

The company is expanding its operations on the continent, planning to triple capacity, at the same time it is closing its Scottish plant. The Port of Amsterdam and Argent Energy are jointly investing €20 million in new dock facilities in the Hornhaven Amsterdam.

Argent Energy have cited a number of reasons for the closure, including competition from imported Chinese biodiesel which benefits from state economic support; an increase of imports of subsidised US-made product following removal of trade defence measures by the UK after Brexit; UK fuel suppliers being able to avoid the normal 6.5 per cent duty for imported biodiesel following approvals by HMRC; and the inability for the UK to import Argent’s main feedstock from the EU post-Brexit.

A member of the workforce in Newarthill told Lanarkshire Live: “The consultation started last week. We’ve been told the place could close anytime between now and June. It seems to be market conditions that are to blame. We create the Biodiesel from waste and supply all the truck companies and fuel suppliers to put into the pumps.

"Due to Brexit the company is struggling to get the feedstock in to run the plant from the EU, that they could get before. There is a UK market from animal fats but there’s a bit of a shortage at the moment. It’s a worrying time for the staff and we’re getting very limited information from management, other than we’re shutting.”

Chief Executive Officer, Louise Calviou said: “This has been the hardest decision for us to make and is one we have not taken lightly. After careful consideration of market conditions and our strategic goals for global decarbonisation efforts, we believe it is a necessary step we need to take. We and our shareholder remain dedicated to our ambitious growth plans, and our mission to displace as much fossil fuel as possible continues.”

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