Ergon Inc to close ethanol plant in Mississippi

Source: By Michael Hirtzer, Reuters • Posted: Tuesday, September 18, 2018

CHICAGO, Sept 14 (Reuters) – Ergon BioFuels LLC, a subsidiary of privately held Ergon Inc, will close its ethanol plant in Vicksburg, Mississippi, in December, the company said in a press release dated Thursday.

* “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,” Ergon Chief Operating Officer Kris Patrick said in the statement.

* The company had planned to invest in improvements in the corn dry mill facility, including a corn oil extractor, before deciding to close it, Patrick said.

* Ergon purchased the plant, which has capacity to produce 56.5 million gallons of ethanol annually, from Bunge Ltd late in 2013. (Reporting by Michael Hirtzer)