Construction of a waste-to-energy power plant in the Tees Valley has been temporarily suspended to ‘ensure modifications’ are put in place.
The suspension, announced today by renewable energy company Air Products, will affect some 700 workers.
Air Products is currently building two waste-to-energy plants in the Tees Valley. Construction of the first project will continue as planned.
"After careful consideration we have made a decision to temporarily suspend construction of our second energy-from-waste project (TV2) in Tees Valley, UK,” the firm said in a statement.
"The duration of the suspension is yet to be determined, but we remain committed to completing both facilities as soon as possible.”
The firm said it identified improvements during the construction of the first plant, TV1, which it now wants to implement in TV2.
"By deferring construction we will be able to ensure any modifications are applied to TV2 in a cost-effective way when activity is resumed,” the statement said.
"Although not part of our original plan, in the long-term, this decision will aid the overall operational success and future of both our renewable energy facilities at Teesside."
Union representatives criticised the decision as it will impact workers in the challenging pre-Christmas period.
"This is devastating news for these construction workers just seven weeks before Christmas,” said Phil Whitehurst, national officer of the GMB union.
"GMB will seek talks with Air Products to find out what has gone so badly wrong on this project where there has been no industrial relations trouble."
The company said workers will be paid as per their contracts.