Siouxland Ethanol to Suspend Production in April
Cites plummeting fuel demand
Siouxland Ethanol has announced it will shut down in April, citing low demand for the corn-based fuel additive, reports the Sioux City Journal.
A "special alert" posted on the ethanol plant's website predicted that US ethanol production would need to be cut by 50% before production could be restarted at the 80-million-gallon plant in Jackson.
The statement from Nick Bowdish, president & CEO says the negative impact of the COVID-19 pandemic on gasoline and ethanol demand in the United States is severe.
"Our company anticipates that total U.S. fuel ethanol production needs to be reduced by at least 50% until gasoline demand recovers," it continues. "While we pride ourselves on being an efficient producer of ethanol, we anticipate that fully suspending production is prudent. We intend to keep our balance sheet and financial position strong, our employees intact, and we look forward to resuming production as soon as economic circumstances allow."