Jobs at risk as D1 Oils reviews its operations

8:46am Saturday 8th March 2008

BIOFUELS company D1 Oils has admitted it could cut jobs as part of a review of operations.

A spokesman said it was looking to "reduce the headcount" at its refinery plants in Middlesbrough, where 40 people are employed, and at Bromborough, Merseyside.

The firm, which was founded by North-East entrepreneur Karl Watkin, is reviewing its downstream refining and trading operations, having been hit by imports of heavily subsidised biodiesel from the US.

It has begun a 30-day consultation with staff and said a further announcement would follow once this had finished.

Elliott Mannis, chief executive officer of D1 Oils plc, 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."

Dr Stan Higgins, chief executive officer of the North-East Process Industry Cluster, said he believed the biofuels industry still had a future in the region.

"Biofuels is a fledgling industry and there will be ups and downs," he said.

"There is a delicate balance to be struck, but I believe the future is still bright for the industry."

Last night, shares in D1 Oils were down 37 per cent at 61p.