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14-09-2018

Ergon BioFuels plans to close ethanol plant

Ergon BioFuels, LLC, a subsidiary of Ergon, Inc., has announced plans to close its ethanol plant in Vicksburg, Mississippi, in December 2018.

The 56.5 million gallon per year plant was constructed in 2007 as a joint venture between Ergon Ethanol, Inc., and Bunge North America, Inc. The plant had previously halted production in December 2012. Ergon purchased Bunge's ownership in the facility in 2013 and restarted the plant in July 2015.

"Ergon management has made significant investments at Ergon BioFuels over the years and had planned additional improvements to increase ethanol and corn oil yields going forward," said Kris Patrick, Ergon COO. "Unfortunately, continued erosion in margins, coupled with underperforming production equipment and the economic challenges of being a destination plant, forced us to make this very difficult decision.

"We have a family-oriented culture and consider employees to be Ergon's most valued asset," Patrick commented. "We will work to place as many Ergon BioFuels employees as possible in our other Vicksburg and Jackson businesses."

A significant employer in the area, Ergon's Vicksburg operations include Ergon Refining, Ergon Asphalt & Emulsions, Ergon Maintenance Services, Ergon Trucking, Magnolia Marine Transport Company, Ergon Marine & Industrial Supply and Ergon BioFuels.

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