VeraSun Energy Shuts Three Plants

Ongoing financial issues, and soft market, force closings of plants in Indiana, Nebraska and Ohio.

VeraSun Energy Corp., has closed three plants in the face of a softening market for ethanol. The company - already in a Chapter 11 bankruptcy proceeding - has shuttered its plants in Bloomingberg, Ohio; Albion, Neb.; and Linden, Ind.

According to a Bloomberg report each of those plants has a 110-gallon capacity and they were closed because ethanol prices have failed to recover. The company says the closings are indefinite.

Many ethanol producers were caught in a cost-price squeeze as corn prices rose to record highs in July. Now corn prices are actually below levels they were a year ago ahead of that summer run-up.

Another ethanol producer - Pacific Ethanol - has also suspended production of its plant in Madera, Calif., according to the report.

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