D1 Oils to shut Middlesbrough refinery
BIOFUEL producer D1 Oils is to close its Teesside refinery, it was announced today.
The renewable energy company, which revealed losses of £46.1m in the year to December 31, 2007, is shutting its Middlesbrough and Bromborough refineries because of stiff competition from the US. The company said refining vegetable oils was difficult because of competition from heavily subsidised biodisel in the US.
D1 will now concentrate on growing the jatropha, which is used for biofuel, and will look at developing other new crops for fuel use. It has raised £16.1m to ease cash concerns by issuing an extra 64.3m shares at 25p each, a 34% discount to Tuesday's closing price.
Last month the company said it was considering the future of staff at the Teesside plant, and at the same time D1 founder Karl Watkin stepped down as a non-executive director, warning that the company would process biofuel “where it is going to make the most money and if that’s not in the UK, so be it”.
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