Minnesota, US-based cooperative Corn Plus will suspend operations at its ethanol plant in Winnebago, Minnesota following the end of the current production run.
According to the company, the board and management will work with Corn Plus’ lenders, creditors and other stakeholders to determine next steps, which could include resumption of operations or sale of the plant.
Despite a number of upgrades over the last few years to improve plant performance and increase capacity to 50 million gallons per year, the decline in market economics for the industry has created difficult operating conditions for Corn Plus. This has resulted in the plant being unable to operate profitably in the current climate.
The plant employs 37 staff members, most of whom have been notified of redundancies. The company added that it remains ‘hopeful’ that the layoff will not be permanent, and that the plant could reopen in the future if market conditions improve.
“This has been a very difficult situation for Corm Plus to navigate,” said Lawrence Sukalski, chairman of the board for Corn Plus. “We kept the plant open as long as feasible, in hopes that we could continue operations and retain jobs for our employees. We just could not overcome the negative economics that the industry is facing right now.”
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