WORKERS have lost their jobs at a mothballed £250m refinery, with bosses admitting they don’t know when the plant will restart production.

CropEnergies AG has shed a quarter of the near 100-strong team across its Ensus bioethanol plant, in Wilton, near Redcar, and a base in Yarm.

Production at the site was halted nearly eight months ago after bioethanol prices buckled under the strains of sluggish European markets and the lower oil price.

The company revealed in June job cuts were likely, as it sought ways to mitigate the prolonged standstill, and officials have now confirmed the changes.

Referring to the ongoing factory suspension, the German company, which runs Ensus as a UK subsidiary, told The Northern Echo the bioethanol sector is improving, but revealed it remains too unsteady to plot any factory resumption.

A spokesman said: “We need sustainably stable prices in the bioethanol market in order to restart the plant in Wilton.

“Bioethanol prices have increased considerably since the historic low in January 2015.

“However, due to low forward prices, we expect the high price volatility to continue and cannot comment on when the plant in Wilton will be restarted.

“There has been a small reduction in staff earlier in the year, but at the moment, around 75 people are employed at the plant and in Yarm.”

According to CropEnergies’ half-year results to August 31, which were released yesterday (Thursday, October 8), the company saw revenues fall to £287m, from £298m a year ago.

However, the strengthening bioethanol market helped earnings before interest, taxes, depreciation, and amortization rise to £42m from £9.5m, due to higher sales prices and lower raw material costs.

Operating profit was also higher, though production fell to 422,000 cubic metres, from 478,000 cubic metres the same time a year ago, due to Ensus lying dormant.

The spokesman added: “The EU decisions to raise the share of renewable energies in the transport sector should lead to a further market growth in the mid-term, especially since bioethanol is among the best, cleanest and cheapest alternatives to fossil fuel.

“As one of the leading producers in Europe, we are well prepared for the increase in demand.”

The Ensus factory uses wheat to create bioethanol, which is added to petrol.

The remaining protein and grain is used to make thousands of tonnes of animal feed and carbon dioxide for the soft drinks and food market every year.

But the site has endured a chequered history, with low demand, poor harvests, rising energy costs and even a bad smell forcing closures and hindering production since it started in 2010.

Throughout the problems, however, bosses always retained staff, with many carrying out maintenance.