Merced Sun-Star Logo

Madera County ethanol plant closes; 40 employees laid off | Merced Sun-Star

×
  • E-edition
    • Customer Service
    • Mobile & Apps
    • Archives
    • Newsletters
    • Buy Photo
    • FAQ

    • All News
    • Local News
    • Business
    • Crime
    • Education
    • UC Merced
    • California News
    • Nation/World
    • Communities
    • Atwater
    • Chowchilla
    • Livingston
    • Los Banos
    • Mariposa & Yosemite
    • All Sports
    • High Schools
    • High School Athletes
    • High School Football
    • Merced College
    • UC Merced
    • Outdoors
    • NFL
    • NBA
    • MLB
    • Politics
    • Elections
    • The California Influencer Series
    • All Business
    • Agriculture
    • All Living
    • Celebrations
    • Food & Drink
    • Health & Fitness
    • Family
    • Blogs & Columnists
    • Brigitte Bowers
    • Debbie Croft
    • Sarah Lim
    • Old Trainer
    • All Entertainment
    • Celebrations
    • Comics
    • Puzzles & Games
    • Horoscopes
    • All Opinion
    • Columns
    • Editorials
    • Influencers Opinion
    • Letters to the Editor
    • Submit a Letter
    • Obituaries
    • View Obituaries
    • Place Obituaries

    • dealsaver
    • Circulars
    • Classifieds
    • Place Classified Ad
    • Pets
    • Garage Sales
    • Real Estate
    • Apartment and Rentals
    • Jobs
    • RVs/Motorhomes
    • Merchandise
    • Service Directory
    • Place an Ad
    • Place Celebration
    • Place Obituary Ad
    • Place Classified Ad
    • Place Legal Ad
  • Jobs
  • Moonlighting
  • Cars
  • Homes
  • See Legal Notices
  • Mobile & Apps

Agriculture

Madera County ethanol plant closes; 40 employees laid off

By Tim Sheehan

The Fresno Bee

    ORDER REPRINT →

January 12, 2009 12:24 AM

MADERA -- Pacific Ethanol announced Friday that it will temporarily suspend operations at its production plant in Madera County beginning today, blaming "unfavorable market conditions" for ethanol production.

The plant is capable of producing 40 million gallons of ethanol per year. But falling gasoline prices and volatile production costs for the grain needed to make ethanol "have squeezed us from both ends," company spokesman Tim Raphael said.

The company has no timetable for reopening the plant, Raphael said. "We look forward to reopening as soon as market conditions allow."

About 40 people who work at the plant will be laid off temporarily until production resumes. "It's difficult for them, obviously," Raphael said. "That's why we're so anxious to get reopened and get back to work."

SIGN UP

Sign Up and Save

Get six months of free digital access to the Merced Sun-Star

SUBSCRIBE WITH GOOGLE

#ReadLocal

Sacramento-based Pacific Ethanol also has production plants in Stockton, Oregon and Idaho. Construction of another plant in Calipatria has been suspended since late 2007.

News of the plant's shutdown concerned Madera County economic development officials.

"Given what is going on in the economy, I was very worried about that business," said Bobby Kahn, executive director of the Madera County Economic Development Commission.

While Kahn wants Pacific Ethanol to reopen, he knows the company faces an uphill climb. "Unless the market conditions really change, some of those workers will be out seeking employment and hopefully be absorbed into the workplace -- or they could face being unemployed for several months."

Pacific Ethanol, which posted a $54.9 million third-quarter loss in November, is not the only one battered by the volatile ethanol industry.

Rival ethanol producer VeraSun Energy in South Dakota recently filed Chapter 11 bankruptcy protection.

VeraSun's struggles have put financial stress on farmers.

"What [farmers] had counted on for their income is just gone," said Darin Newsom, grains analyst at DTN Ag in Omaha, Neb.

  Comments  

Videos

Learn about the bill that would remove speed limits on I-5 and Highway 99

Merced County deputies, officers involved in shooting. No injuries

View More Video

Trending Stories

Merced man to face trial in Loughborough murder case, second suspect still at large

February 22, 2019 04:52 PM

Merced man’s murder charge dropped in 2007 cold case, after witness deemed not credible

February 22, 2019 04:21 PM

Motorist dies in north Modesto after swerving to avoid cat

February 22, 2019 10:21 AM

Longtime Mariposa coach leads team to first section title game in his final season.

February 22, 2019 02:19 PM

California’s own Autobahn? Valley reps have mixed reaction to no speed limit on Highway 99

February 22, 2019 03:24 PM

Read Next

Agriculture

The world’s biggest farm show opens in Tulare on Tuesday. Here’s what you need to know

By Robert Rodriguez

    ORDER REPRINT →

February 11, 2019 12:00 AM

The World Ag Expo, a three day farm equipment and agricultural show that brings visitors and vendors from around the world to Tulare, California, begins Tuesday, February 12, 2019, to the International Agri-Center.

KEEP READING

Sign Up and Save

#ReadLocal

Get six months of free digital access to the Merced Sun-Star

SUBSCRIBE WITH GOOGLE

MORE AGRICULTURE

Almond milk is booming. Blue Diamond will expand its Turlock plant to meet the demand

Latest News

Almond milk is booming. Blue Diamond will expand its Turlock plant to meet the demand

January 29, 2019 01:19 PM
Merced Irrigation District plans lawsuit to fight controversial Bay-Delta plan

Agriculture

Merced Irrigation District plans lawsuit to fight controversial Bay-Delta plan

December 19, 2018 04:40 PM
Circle of life? Turlock plant will make organic fertilizers from rendered animals

Agriculture

Circle of life? Turlock plant will make organic fertilizers from rendered animals

December 18, 2018 05:20 PM
Huge layoffs loom at ‘struggling’ Fresno poultry processor

Agriculture

Huge layoffs loom at ‘struggling’ Fresno poultry processor

October 30, 2018 03:53 PM
Trump signs law giving Merced County more water storage

Agriculture

Trump signs law giving Merced County more water storage

October 23, 2018 05:27 PM
MID says it’s close to having more water storage in Merced County dam

Agriculture

MID says it’s close to having more water storage in Merced County dam

October 17, 2018 03:57 PM
Take Us With You

Real-time updates and all local stories you want right in the palm of your hand.

Icon for mobile apps

Merced Sun-Star App

View Newsletters

Subscriptions
  • Start a Subscription
  • Customer Service
  • eEdition
  • Vacation Hold
  • Pay Your Bill
  • Rewards
Learn More
  • About Us
  • Contact Us
  • Newsletters
  • News in Education
  • Archives
Advertising
  • Advertising Information
  • Place Obituary, Celebration
  • Place Classified, Legal
  • Local Deals
Copyright
Privacy Policy
Terms of Service


Back to Story