The company behind the construction of two energy-from-waste plants on Teesside has confirmed plans to exit the projects, leaving the fate of almost 150 workers in the balance.
Construction of one of the two Air Products plants was temporarily suspended in November 2015 and last month, the company was forced to deny reports that the first plant was earmarked for the same fate.
However, Air Products has confirmed that it will exit its energy-from-waste (EfW) business. Approximately 125 employees work on the project, alongside 20 contractors.
“In previous public comments, Air Products’ management has communicated the challenges with the Tees Valley, UK projects,” it said.
“Testing and analysis completed during the company’s fiscal second quarter indicated that additional design and operational challenges would require significant time and cost to rectify.
“Consequently, the board of directors has decided that it is no longer in the best interest of the company and its shareholders to continue the Tees Valley projects.”
The company said that, as a result of exiting the sector, its EfW business segment will be accounted for as a discontinued operation effective in its second fiscal quarter.
During this period, Air Products also expects to record a pre-tax charge in the range of $900m (£629m) to $1bn (£699m) in discontinued operations, primarily to write down assets associated with the EfW business.