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.