A KIRKBY firm that specialised in recycling used chip fat to car fuel has collapsed into administration.
Refuel Energy, the area's biggest producer of biodiesel, was unable to continue trading when vegetable oil prices rocketed due to increased demand.
However, administrators Parkin & Booth arranged a pre-pack deal with director Victor Kaminiski, who is hoping to revive the business on a smaller scale.
The company bought in used oils from around the region and had them transported to tanks on its premises at Kirkby Industrial Park for conversion to biodiesel.
Administrator Robert Rutherford said: "The rise in raw material costs had a significant impact on the business which was had heavy borrowings. Costs went from something like £100 a ton to £600.
"This sort of business would normally have good prospects but market conditions had worsened and even though directors had an offer of further funding they did not feel they could move forward.”
