FAIRMONT, Minn. -
For years the ethanol plant in Fairmont brought jobs, property taxes, and greater value to the area crops.
Fairmont Area Chamber of Commerce President Bob Wallace says "Producing 110 million gallons of ethanol each year their goal in the end was to be one of the top ethanol producers in the country."
But that goal came to a halt when BioFuel Energy Corporation, head quartered in Denver, Colorado decided to idle production last fall, and followed up this week by announcing job cuts.
BioFuel's Vice President and general counsel, Mark Zoeller says "We have taken the unfortunate decision to lay of almost 40 people for an indefinite period of time."
Wallace says the layoffs are a blow to the community, "In any community anytime you have a loss of jobs it's significant to the community so hopefully when the economic conditions are right again and they can start producing again this fall."
The plant had stopped ethanol production in back September amid high corn prices and a surplus of the corn–based fuel additive. At the time, the company said it wouldn't make any changes to its operations team so it could restart the plant on short notice. The company now says it expects the plant to remain idle until this year's harvest season.
"You can't just continue to lose money continuously right and at this point we need I conserve as much capitol as possible to hopefully preserve the plant when margins dictate."
Zoeller says the company will continue to employ 15 people locally, primarily at its grain storage facility, and if things pick up potentially rehire the laid–off employees.
Zoeller says, "Hopefully to be able to rehire then when margins return in the fall but there are no guarantees of course."
BioFuel is now operating just one 110–million gallon per year ethanol production facility in Wood River, Nebraska.
