Ergon Inc to close ethanol plant in Mississippi

CHICAGO, (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. 

“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)

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