LONDON (Reuters) – INEOS has proposed closing its ethanol plant at its Grangemouth site in Britain in the first quarter of next year, it said on Tuesday.

“The decision comes after a lengthy review and is the result of a reduction in demand for ethanol in Europe combined with increasing pressure from imports of ethanol from other regions. This has resulted in the ethanol business at Grangemouth running at a loss for several years,” the company said in a statement.

The firm said it will start consultations with employees and the trade union about the proposal.

“All ethanol-based employees will be offered an alternative role within our business. Moreover, customers will be offered the supply of ethanol from INEOS’ other plant in Herne, Germany,” said Stuart Collings, chief executive of INEOS O&P UK.