Gas company Air Products has announced plans to end its Energy-from-Waste (EfW) business.

The move means plans for the second phase of a EfW facility in Teesside will be scrapped.

In a statement, the company's Board blamed technical problems and rising costs for the decision.

Previously, 700 construction workers were laid off after work was temporarily halted on the project in November.

In a statement, Air Products' said: "In previous public comments, Air Products' management has communicated the challenges with the Tees Valley, UK projects.

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"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.

"Exiting the EfW business will allow the Company to direct its resources to its core business of Industrial Gases."

Seifi Ghasemi, CEO of Air Products, added: "We pushed very hard to make this new EfW technology work and I would like to thank the team who worked so diligently. We appreciate the hard work of our employees and contractors at the site, and certainly understand their disappointment in this decision."

It is understood the company plans to seek a buyer for the part-built facility.

(LM)