Associated British Foods PLC has provided an update on its sugar business, reaffirming its fiscal 2025 guidance.
The company has warned that it may be forced to close its Vivergo bioethanol plant in the UK if it does not receive short-term funding and a longer-term solution from the government. This decision is contingent upon the company’s ability to secure necessary financial support.
The potential closure of the Vivergo bioethanol plant is attributed to the recent trade deal between the UK and US, which will see tariffs on US ethanol fall to zero. This development is expected to make it challenging for the UK plant to remain competitive.
Key factors influencing the company’s decision include:
- Short-term funding requirements
- Longer-term solution from the government
- Impact of tariffs on US ethanol
The company’s shares have been affected by this news, with the overall market performance also influencing its stock price.